To Call or To Game? Sony Plans a PlayStation Phone Tweet

Among the mobile devices Sony is developing is a PlayStation phone that can download and run PlayStation games. Sony is also said to be developing a device similar to Apple's iPad with PSP features. But branding the new Sony phone as a PlayStation device might not be wise. An analyst sees more success selling the phone as a Sony Ericsson brand.

Japanese electronics giant Sony has been busy developing new handheld devices in an effort to better compete in the mobile market. Under way is a suite of new devices, including a PlayStation game-playing phone.

For decades Sony has kept its focus on consumer electronics. When the company wanted to compete in the mobile-phone market, it formed a joint venture with Ericsson. Now Sony is expanding its presence in the smartphone and portable-device market.

Engineers at Sony are developing a smartphone capable of downloading and playing PlayStation games, according to published reports. Also reported under way is the development of a portable device with similarities to Apple's iPad tablet computer with features seen on netbooks, e-readers and its own PlayStation Portable.

"As already announced, Sony (including [Sony Computer Entertainment]) and Sony Ericsson have been strengthening their collaboration Relevant Products/Services in the networked mobile space," said Julie Han, a Sony spokesperson. "However, it is not our strategy to discuss future products or business plans before we make a formal announcement."

Identity Crisis

There has been speculation for some time about Sony developing a PlayStation phone, but the question has always been whether Sony or Sony Ericsson would release it and how it would compete against existing and new devices with similar capabilities.

"Sony has rejected this idea in the past, but in an age where the iPhone, iPod touch, iPad and products like Windows Relevant Products/Services Phone 7 Series all have gaming as a core feature, it's time for Sony to rethink their mobile strategy and just who they're competing with these days," said Michael Gartenberg, a partner at Altimeter Group.

What would make more sense for Sony would be to market the device under Sony Ericsson, said Carolina Milanesi, a research director at Gartner.

"I doubt Sony will come out with something that has integrated cellular not under the Sony Ericsson brand," she said. "Apple's devices are not gaming devices alone, and this is why they appeal to a larger audience."

PlayStation Power

Sony's PlayStation brand has had success in the gaming market, selling PlayStation consoles, games and portable devices.

The PlayStation 3 was the only brand that consumers in three countries, including the U.K., the U.S., and Japan, spent 15 percent more on software in 2009 versus 2008 while the market as a whole experienced a decline, according to a blog post by Sony Computer Entertainment of America CEO Jack Tretton. And in January, there was a 36 percent sales increase for PS3 hardware.

Still, some wonder if the PlayStation brand is enough to drive huge sales of phones.

"My position has always been that the brand alone is not going to drive sales in the same way the Cyber-shot and Walkman have done for Sony Ericsson," Milanesi said. "The gaming market is different. If you are a core gamer, a phone will always give you a compromised experience, and if you are not, then the brand will add some value but not many people will buy it just because you have a PlayStation name on it."

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