Rumors are circulating that Sony is planning to develop a combo gaming and cell phone device. Japanese Business daily Nikkei reported that Sony is putting together skunkworks team to develop this gadget that will marry the PlayStation Portable gaming consoles with the Sony-Ericsson mobile phone handsets.

O RLY? Can Sony take on the iPhone? Neither their Walkman or Sony Ericsson phones do that well at all in the US market. Personally, I’d like to see more Ericsson phones in the US market, I’ve had an Ericsson phone and I was really happy with it. But the general attitude towards Ericssons are “meh” at best. What could help this phone is if it gets the same all access to the PlayStation gaming network like their other handheld gaming systems. They also have to go up against the big wall of iTunes.

However, this isn’t the first time that Sony’s had designs on this kind of hybrid device. From Businessweek:

“Rumors that Sony was working on a PlayStation cell phone first cropped up two years ago when Sony’s engineers filed a patent describing such a gizmo. The Internet rumor mill went into overdrive again in April, after Kazuo Hirai, who had led Sony’s video game division, was named as the head of a broader portfolio of networked products and services. The PlayStation Network is Sony’s biggest success story in online services. Under Hirai, the PlayStation group has rolled out online downloads of music, movies, TV shows, games and created a content platform for developers to create applications and games, sell videos, and post trailers and sneak previews. It’s clearly the model that Sony wants other divisions to emulate.”

With some phones such as the LG Versa trying to capture the gamers with it’s gamepad module, we see that companies are hoping to catch gamers’ attention. We have yet to see if they will bite.

[via businessweek]