Is The PSP Phone Coming?

Reports say that Sony is considering developing a phone-portable game hybrid to go up against the iPhone.

As more companies develop games for the iPhone, Sony’s handheld PSP games console is feeling the pinch. And that may well be why, according to reports from Nikkei business daily and Reuters, the company is considering developing a phone-portable game console hybrid.

A team could begin working as soon as next month to develop the product which will mash together features from the PSP along with Sony Ericsson’s mobile phones.

Sony hasn’t officially commented on the matter, but if it should happen, then it could provide some serious competition to the iPhone.