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This is what PSPGo should have been. Finally a solid device that even I would consider buying. It would give me the solid Android phone I want with a very good mobile gaming portion... and it could coexist with any other handheld console as its essentially a smart phone. So, I could own this and a 3DS as an example.

My only points about this rumor is that:

1. It would need a better CPU as even the other Android devices being rumored for later this year will have a much higher CPU.

2. Probably a 8MP camera or greater.

You must remember that the other benefit of a device like this is the price can be $500 or so as that is then incorporated into the contract price for carriers like all phones. So it would hit the $200 'normal' price for the consumer just like all new smarthphones.

This is where Sony may hit a home run. Still won't outdo the 3DS as its gonna be less in hardware and as most phones it will be replaced rather quickly (about 1.5years), but it will give Sony a solid platform (Android) to push their 1st party games and thus generate a lot more revenue.

This is SuperChunk and I approve of this device. :)