I've said before that a PSP2 would be too soon given how expensive it would be. But if they are going the smartphone route, that doesn't matter. Sony could make up the initial hardware losses by requiring you to sign a long-term contract with their exclusive carrier. This doesn't surprise me. It's really hard to compete head-on with Nintendo or Apple. But Sony can carve a really nice niche for themselves right smack in the middle of both markets. For gamers that want an iPhone AND a true handheld gaming device, a PSP Smartphone would be a good bet.
Seeing as how I'm a prepaid user, I have zero interest in a PSP Smartphone. Paying an insane amount for an unlocked PSP smartphone wouldn't be worth it to me either. But for those that do want a smart phone and a handheld device in one, PSP smartphone is intriguing. Hopefully the carrier and service plan doesn't suck ass.
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