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Update

It seems pretty much official the PSPhone is a reality though it is said not to be PSP2. Considering this phone will launch with the Android OS, does it have a chance at beating Apple's I-Phone or at least stealing market share from it?

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It seems since E3 their have been rumour after rumour about the PSP2. One big rumour is that the console will have the Android OS and essentially be a phone. This got me thinking what if the PSP2 is actually a PSPhone to a degree. The conclusion I've come to is Sony might release a mutlipurpose PSP2.

I think the PSP2 might launch as both a handheld game console and a phone. You could buy the console in almost every electronics store with its default functionality (Movie store/NetFlix , MP3 capabilities and gaming capabilities) as well as downloadable apps. Then if the consumer wants they can take it to the service provider Sony works with and add cell phone capabilities to the system.

So you wouldn't be forced to sign a cell phone contract to operate the system, it would be an advanced PSP with cell phone capabilities optional. Think touch screen ,graphics between X-Box and 360 with cell phone capabilities and probubly some internal memory for apps and such.

Think about it some consumers could sign a contract for the PSPhone and get one free with a 3-year contract, or they could go into their local store and pick it up for 250$. The device would be sold all over and with an Android App store it would offer many features the 3DS doesn't and features an I-Phone couldn't.

If the PSP2 is actually alot like an Android phone with a touch screen, cell phone capabilities and App's could this device potentially bring down the I-Phone?

No.

I'm thinking if they release a pspphone It would be along with a psp2, similar to the itouch and iphone. That way people who don't want a phone could buy it for cheaper.  I'm almost positive a pspphone would end up being much more expensive then $250 without a contract. Just look at the none contract prices of current smart phones, and they by no means have graphics anywhere near between xbox and 360 level. I also don't think it would hurt iphone sales that much. A lot of buyers aren't that interesting in buying games that require more then a few minutes of invested time, plus there are the many hardcore apple fans that would never buy anything else. Although it could hurt iphone sales  for the 18-30 year old crowd.

Sony's going to kill Apple the same way walkman killed ipod.

No, but it could probably kill itself.

Ewww, Nobody wants to sign up for AT&T's crap network though it may actaully increase in speed if the Verizon iPhone is true for this January.

Yes, if you threw it hard enough

No chance.

Not everyone wants to play full sized games on there phone most apps are just a novelty. The iphone appeals to more people because its a fashionable item as well as a  good phone. The PSP phone might appeal to gamers but would have to be innovative in many other ways to appeal to the general population and people who want to by a smart phone.

Neh.. target audience would be too small, Android is heaven for piracy and that baby would cost > $400.. and you'll see that people owning an iPhone won't switch that easily to another phone.. cause 1. it's a damn fine phone and 2. you already have apps invested in it.. I wouldn't switch cause i bought over $100 on apps..

Lol, I have no choice but to endorse this!