http://online.wsj.com/article/SB10001424052748703636404575352681516157268.html

Meanwhile, Sony is developing a portable device that shares characteristics of hand-held game machines, e-book readers and netbook computers, according to people familiar with the matter. Some Sony e-book readers already come with 3G connections but it isn't clear if a new wireless gadget will use carrier networks.

Sony hasn't announced any immediate plans to revamp its PSP hardware.

Last year, the company released a new version called the PSP Go, which played only downloaded games, doing away with the physical cartridges. While the device has sold poorly, the company has said it learned a lot about consumer behavior from the PSP Go.

Yusuke Tsunoda, an analyst at Tokai Tokyo Research Center, said talks of a carrier partnership are a sign that the videogame-hardware makers are feeling the pressure from smartphones, which are used to download and play simple games.

"The distinction between gaming devices and mobile communication devices, like smartphones, are blurring. And it may eventually disappear," said Mr. Tsunoda.

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The first half of the article's about 3G in the 3DS, but I found this part the most interesting.  Such a device seems like it would lack focus.  Am I wrong?

Hmm so it only tries to do everything. Is this a case where it could be a jack of all trades and master of none?

Hmm sounds like a certain pad that is on the market. I really worry for sony, if they compete with apple they might get burned (as much as I dislike apple and want them taken down by sony).

Fixed :)

That works too. :P

Well yeah, but will it be too late to the market? Theres already a lot of iPadish competition that Sony must also compete with. It seems Apples competitors compete for market share between themselves rather than denting Apples overall market growth. Like for instance Windows Mobile and WebOS might make strides on the market, but if they do it'll be at the expense of other players like RIM and Android rather than Apple themselves.

I don't think you're wrong, but I'm not sure if focus is quite so valuable in the portable space. Carrying one device for each specific purpose is impractical, so I suspect people would like to carry one or two devices that do a passable job at nearly all purposes rather than juggling several devices each specifically suited to one task.

Convergance has a special value in mobile devices that doesn't apply so much to home and work. Nobody wants to carry a laptop, Kindle, cell phone, iPod, PSP, Flip camcorder and digital SLR all the time. A good smartphone can do a passable job of replacing all these devices, and add a specialized gadget or two for the individual in question's big passion.

Could they be talking about the Dash?

http://gamrconnect.vgchartz.com/thread.php?id=112710&page=1#

:P

The biggest problem SONY has is figuring out how to market their products... they usually make good hardware without knowing how to sell it.

They need to do more market and customer analysis instead of relying on their R&D teams to come up with products.