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The thing is, I feel that a 5" screen is impractical as a phone, and that thing would just be too big to lug around as a phone, especially with the analogue sticks on the side.

If they can come up with a PSP go styled one, then maybe it might work as a phone, but I like their strategy, and I really want both, even if the XPERIA play is nothing more than a playstation certified device