Just curious because Android desperately needs to make a splash in the gaming arena because the market is pretty lacking compared to the iPhone.

It would also receive regular updates, something many Android phone users have trouble finding. Still waiting on 2.2 Froyo from Samsung...

It would also most likely be pretty cheap in terms of handhelds and/or phones with a 2-year contract. Probably ~$149-199.

Could have a slide out dual analog nub, buttons, etc... pad instead of the slide out keyboard. I am accustomed to touch screen keyboard now and I assume many others are as well.

With the power some of these newer android phones are pumping out I wouldn't be surprised if this is going to get made.

Do you think people would buy it? If I didn't buy my Captivate a month or so ago I probably would, but if this were to be real I am sure the 1-year early upgrade option still wouldn't be so cheap, so I would have to wait.

Thats a good idea.
You should get a job at SONY.

Succesfull? I would say no.. giving your son or daughter a psp is something entirly different then a psp with a phone contract, heck it would even be a phone contract with internet... Sony's target audience would get smaller.. you can't even get a phone contract in the Netherlands when you're younger then 18.. how's that in other countries?

If you think piracy on PSP is bad, on Android it is horrible. In Asia it's like 97%.

They could just avoid the 3DS all together this way and hop into the growing Smart Phone gaming market.

That market is also why I think Nintendo felt the need to release the 3DS when the DS is still selling tons.

I would always deny that the market there was significant, but it really is growing and I always see people gaming on their phones now.

As for your issue, they could also have a version of it available without phone capabilities, just like the iPod touch can play the same games as the iPhone. You would only need a Wifi connection to access the marketplace.

I was thinking about that too.

Sony probably doesn't want to go head to head with 3ds. If they do this they can be the iphone/3ds combo and get people who would be interested in both types of device. 

Id buy it if it was user friendly and looked/felt nice in my hands.

Actually a few months ago their was a report that Sony signed an agreement to use the Android OS in a new device. Many rumoured it would be the PSP2. Now I don't think the PSPhone would be strictly a phone. I bet it would be a PSP2 with the ability to be used as a phone.

It would likely be sold as PSP2 in game stores all over, then if the consumer wanted they could go into the chosen phone provider and upgrade the console to include phone connectivity. Think of it like X-Box and Live, you don't have to have Live to own and enjoy a 360 but Live can be added later on to boost services.

In the end I think PSP2 will have some kind of phone functionality. Reports from handheld developers is that handhelds are loosing market share to I-Phone and Sony already tried a direct confrontation with Nintendo and failed to steal market share. I think their next target will be I-Phone.

I bet that PSP2 will be availible in game stores around the world without the phone activation default while being provided in cell phone stores for a real cheap price with a contract. Sony will try to take on both I-Phone and 3DS at the same time by offering a device that does what both do.

I call it right now PSPhone is coming sooner or later whether its PSP2 or PSP3 sooner or later Sony will jump into I-Phone territory and I think now is the best chance they have at competing!