From Afterdawn:
Says President Bert Nordberg, via electronista: "We missed the window for high-end and touchscreen devices big time. Part of the recovery will be much better design and closer work with our partner Sony... In the past there was no tie-up between us, the PSP platform and Sony, but you can expect to hear much more about that."
There have been many rumors of a "PSP phone" in the past, but not to many have come with basis directly from the mouth of the President of the company.
And then of course, there was the bit from Stringer's press conference about PSN expanding to mobile phones.
From Engadget: