The Wall Street Journal reports that Sony will release a new smart phone "capable of downloading and playing PlayStation games" later this year, as well as a competitor to Apple's iPad that may also play PSone titles.

The Journal notes that the original PlayStation game-playing smart phone is being developed by Sony and mobile handset manufacturer Sony Ericsson. That's a story that we've heard plenty of times before in various incarnations, but with declining PSP sales, a cool reception to the digital download-only PSPgo, and increasing competition from iPhone and iPod gaming, the timing sounds logical.

Sony's other device that "blurs distinctions among a netbook, an e-reader and a PlayStation Portable," according to the Wall Street Journal, is targeted for a 2010 launch.

Wonder what networks it would be on.

I'd buy it first day as long as it isn't AT&T only...I hate exclusive phone deals. Never mind, I'm sure it won't be AT&T though...the iPhone is AT&T.

just a word of advice, never buy anything the first day. lots of consoles, phones, handhelds , anything tech. have been outdated on arrival. so they just forget about them and moved on.

Im guessing Verizon if this goes Single Carrier. Im definitely looking forward to more information on this and it is about damn time Sony.

If it looks good is not too big and is a good phone I could buy it.

I know, I do it anyway. Not like I have anything important to buy...got my Dreamcast, Playstation 2, Xbox, Playstation Portable and Nintendo DS first day. Couldn't get the current gen consoles first day, they were all sold out.

This may be my first psp

I've said before that a PSP2 would be too soon given how expensive it would be. But if they are going the smartphone route, that doesn't matter. Sony could make up the initial hardware losses by requiring you to sign a long-term contract with their exclusive carrier. This doesn't surprise me. It's really hard to compete head-on with Nintendo or Apple. But Sony can carve a really nice niche for themselves right smack in the middle of both markets. For gamers that want an iPhone AND a true handheld gaming device, a PSP Smartphone would be a good bet.

Seeing as how I'm a prepaid user, I have zero interest in a PSP Smartphone. Paying an insane amount for an unlocked PSP smartphone wouldn't be worth it to me either. But for those that do want a smart phone and a handheld device in one, PSP smartphone is intriguing. Hopefully the carrier and service plan doesn't suck ass.

^are you serious? You're not interested in a smartphone that annihilates any other in gaming? What kind of nerd are you?