Sony can go 2 ways, as many have mentioned making a PSP phone is not a bad idea, get the Android OS and add PSN connectivity and it's good to go. The other thing they can do is take a different approach from Nintendo, which is oddly Sony's approach and go Nintendo's old approach and push the hell out of coop, push it so much you'd think it was X-Box live. Put proper PSN support in the PSP2, let people on the PS3 know if you're playing a PSP game, and if you have the same PSP game, why not pop it in and coop. Add p2p infastructure for said coop so I don't have to be besides someone to play. Trophy support for PSP games, and even a second analogue nub and this can go a long way, get third parties on board the way Nintendo did and I think Sony might be able to create an equilibrium which in a way they have now with games between the DS and PSP. If they can't create this equilibrium then the PSP phone might be the only way to go.
