Oft rumored, is Sony ready to leverage both the struggling Sony Ericsson partnership and the still fairly solid Sony Playstation brand to produce a Playstation Phone? (PSP Phone? PSPhone? PSP Go-Call-Someone?).

Makes sense from a competitive point of view, and something we certainly thought we'd see sooner. If Sony can get passed their historic intra-company integration problems, and avoid doing anything silly like ATRAC DRM or root kits -- if they could get a product manager who could cut through the quagmire and drive everything that's good about Sony into the product -- it could be an interesting contender.

For the iPhone, of course:

Nikkei says it will directly compete with the iPhone, and that a project team was set up last July to start working on the console/phone hybrid. So basically, it's the same rumor we've been hearing for years, except this time from a reliable source. Whether it's got any truth to it remains to be seen. Note: The above image is a mockup. Seems obvious but sometimes you gotta say it out loud.

[Gizmodo via Reuters]