It's been rumored before, but Sony is now confirming that it will be forming a team as part of its Sony Ericsson partnership to develop a hybrid cell phone and gaming device. With big names in the gaming industry already targeting Apple's iPhone and iPod Touch platforms with tremendous success, Sony's move aims to protect its floundering stake in the mobile gaming market.
Work on a PSP (PlayStation Portable) phone of sorts is expected to begin as early as July. [More at Reuters]
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