It’s clearly not yet ready to talk openly about either the PlayStation Phone or the PSP 2, but Sony has at least gone as far as to confess that it is developing a smartphone product in correlation with Sony Ericsson.
“As for the new PSP product, as mentioned, I know that you are not asking me to tell you when we will be coming out with a new product, but there is a gaming market based on cellphones, and there are many changes that are being seen [with] Nintendo, as well as ourselves, in the field of the product for the gamers,” company execs stated in an earnings call, as reported by Engadget.
“And there are smartphones and others or even cellphones gaming markets are very popular here in Japan. So the market itself is expanding. It's not that we are not looking into those markets as well. We will look into those markets in trying to develop strategy for the future. So we are trying to figure out what we can do as Sony in this market."