Sony Building PSP Phone after Cyber Shot And Walkman

Sony Corp is working on a cellphone and PSP hybrid to better compete with Apple’s iPod Touch and iPhone.

Sony was talking to major recording companies about providing downloadable music to the Playstation Portable (PSP). While Apple’s devices aren’t dedicated gaming machines, there is a notable overlap in audiences and the App Store has started attracting major gaming developers such as Capcom, id Software, and Square Enix.

The PSP has sold over 50 million units worldwide in the past 4 years, while Apple has already reached over 40 million units sold in the past 2 years.

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