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Sony's answer to the iPhone: the PSP?

The iPod is the 21st century Walkman and it seems that Sony isn't content to let Apple potentially dominant the internet communication market with the iPhone. They have teamed up with BT (that's British Telecom to you) to offer a number of new features on the PSP. The new features include video and voice calls, though all the features depend on being connected to the internet in order to function. Might this make the PSP into an iPhone competitor? Considering that 28 million of these little things are out there, it just might.