What people want is Xperia Play + PS Vita w/32GB for $249.99 subsidized (with a contract).
Take the power of the PS Vita, combined with the telephony capabilities of the Xperia Play. The ability to play PS Vita games, PSP games, and Android games. The availability of Android apps. Multiple carriers. Two thumb sticks. Two shoulder buttons and two trigger buttons. The ability to get all their current digital games on the new device, a way to play old UMD-based games, and a easy means to transfer licenses from one device to another.
Create a service provided by Best Buy or GameStop where a customer brings in their UMD-based game, gets it digitally transferred and keyed to their account and device, then they take possession of and destroy the disc. In the process the user also gets a digital license for the game so in the future they can download it again if anything happens to it.
Simple.
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