a PSP phone "could happen," and now a report from Nikkei business daily states that Sony is planning on putting together a team as early as next month to build product that would act as a combination of a PSP and a Sony Ericsson handset. It makes plenty of sense, both as a differentiation from Nintendo and as a confrontation of the looming iPhone threat -- and hey, it might also act as a decent salve over the lukewarm reception of the pricey PSPgo. Unfortunately, if Sony is just about to get started on this, we likely wouldn't be looking at any resulting product for a while to come. Sony declined comment according to Reuters, which doesn't mean a whole lot, but it's worth keeping in mind that we've been hearing this sort of rumoring since back when the N-Gage (as a product) was still almost relevant.
[Via Mac Rumors]