If they go the phone route (Id love them to make a PSP2 that is a phone and/or just a regular handheld, ie Ipod, Iphone) they are sitting in a great spot. Apple had no previous base when they started (Sony has Sony-Eri). Sony-Eri has a good deal in place with Google right now for Droid.
What they would need to do (atleast in the US) is this:
1) Go with ALL the large carriers and as many of the smaller ones as possible (Verizon, AT&T and Sprint) and of course work with both CDMA and GSM (and allow them to speak to one another)
2) Make it B/C with current PSP games (maybe not disc based since they should not use UMD again, but definitely DD)
3) Finally give Sony as real reason to have purchased Eri so long ago.
4) Your enemy's enemy is your friend (Google and Apple hate one another probably more than any other 2 companies I can think of)
5) Have it work with PS2 games as well (obtained Via the PSN) would be such a good idea.
