The PSP could have been the de facto PMP/Portable Gaming System, had Sony been a little more flexible with storage options and customization, and had they not been so damned insistent on the utter failure that is UMD.

Sony has a marginal track-record, at best, with portable devices. They can't rest on their 80s Walkman laurels forever. Few would argue that the Playstation console is a great thing, but that doesn't make the name a "prestigious brand" when their very own PSP is doing naught but collecting dust on the shelves of so many. Making it a remote control for the PS3 is "neat" but certainly not what people were praying for when they bought one years ago. "Gee,I hope some day in the glorious future, I can use this tiny portable gaming system to do useless things with a next-gen Playstation console!"

Ericsson would be doing Sony a huge favor by incorporating PS branding into their phones. The cross pollination of phone with PSP/PMP and inter-platform coordination could possibly bring it up to speed.

I think Sony still has pipedreams of making the PSP a dominant mobile platform, but they've missed that boat by making it both too feature-costly, and also completely gimped. Much like building a 475hp hotrod kit car in one's basement, only to realize you can't get it outside now, then wincing as you see your friends buzzing around the neighborhood on lawnmower go-karts.

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