Sony has dropped strong hints of a PSP on crack, aka PlayStation cell phone, which would put itself in direct competition with Apple's iPhone.
The PlayStation phone would be fast enough for games with a second-generation 1GHz Snapdragon chip but would focus the most on its software.
Sony says it all boils down to limitations, which is the reason why the PSP and its WiFi only connection has had very poor sales.
One thing is for sure, people want a all in one, always connected, device and this could be it.