If they do release one, i hope its with touchscreen. Every phone nowadays have to have touchscreen to be successful. But they need the same support as the App store for me to be interested.

Found this om Macroumors...

"Sony Designing Mobile Phone/PSP Hybrid to Better Compete Against iPhone?
Saturday June 27, 2009 10:50 PM EST; Category: iPhone
Written by arn


Reuters reports that Sony Corp is working on a cellphone/game player hybrid to better compete with Apple's iPod Touch and iPhone.
Sony plans to set up a project team as early as July to develop a new product that combines functions of its portable game player and Sony Ericsson's mobile phones, the Nikkei said.

Sony appears to be considering a number of different moves to go head-to-head with Apple's iPod Touch and iPhone platform. An earlier report claims Sony was talking to major recording companies about providing downloadable music to the Playstation Portable (PSP). While Apple's devices aren't dedicated gaming machines, there is a notable overlap in audiences and the App Store has started attracting major gaming developers such as Capcom, id Software, and Square Enix.

The PSP has sold over 50 million units worldwide in the past 4 years, while Apple has already reached over 40 million units sold in the past 2 years."

This could be big, the touch controls could be used for the phone aspects and the buttons could work for the gaming aspects

Touch is a must! Or it will fail!

like i said in the other thread...if this is real screw the GO

Yuck. I hope that picture is an artists impression, not a prototype. That has to be the most badly set out phone in existance.

(Ahh, yes, you already said it was a mockup.)

lol!

But bluetooth is always an option to save (too much) embarrasment.

Hmm let's see:

take PSP go, add touchscreen which would show keybord when using phone function and use bluetooth headphones

see i just made psp phone :D

If phone is compatible with current PSP library that could be huge in Japan.