PSP Rumour: Sony Ericsson to challenge Apple's iPhone

Sony Corp. of Japan and Sweden's Ericsson have a long established joint venture in the Sony Ericsson line of cell phones. According to Reuters, it was reported in Saturday's Nikkei business daily that Sony would like to bring enhanced portable gaming features to the Sony Ericsson label to compete directly with Apple's iPhone and iPod Touch product lines.

More and more game developers, like Capcom, are designing games for Apple's popular iPhone device and this is seen as a direct threat to some of Sony's portable gaming products.

Sony is not commenting on the story but others have speculated that we may see a PlayStation Portable-like device that can make and receive cellphone calls.

On the eve of Sony's 30th anniversary of their original Walkman product, Sony is facing increasing competition from rival Apple and Nintendo products during a global recession which has led to Sony's first annual loss in 14 years.

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