According to the Nikkei business daily, Sony is actively considering developing a 'PSP phone,' a mobile phone/gaming handheld hybrid, in an effort to compete with the astoundingly popular iPhone.
Although Sony declined to comment on the speculation, the move would make sense and has been oft rumored for years.
Game developers such as Capcom have been offering games for the iPhone, taking advantage of the strong market share for Apple products while at the same time taking away revenue from the traditional handheld gaming devices, the PSP and Nintendo's DS/DSi.














