Sony is considering bringing a game and mobile phone hybrid onto the market in an attempt to compete with Apple's iPhone.
That's according to a report by Japanese business daily Nikkei, reported over the weekend by Reuters, which said the electronics company would be setting up a team for the venture as early as July to develop the product, described as a cross between the PSP and a Sony Ericsson mobile phone.
As an obvious move for the company, which has already combined its Walkman MP3 players with the Sony Ericsson to create music-based mobile phones, the so-called PSP Phone has been rumoured for a while.
A growing number of traditional games publishers such as Capcom and Konami are developing games for iPod and iPhone with suggestions Apple's success in the market could impede on sales of both Sony's PSP and Nintendo's DS.
With the mobile phone technology already in place and Sony leaning towards digitally distributed content for the new PSP Go, a PSP Phone seems like a logical step, however Sony has so far declined to comment on this most recent report.