Nikkei Reports Sony Is Working On Famed PlayStation Phone

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Nikkei, one of the largest media conglomerates in Japan, is reporting that Sony has been working on a combination cellphone/game system for nearly a year. It's a rumor we've been hearing for years, so what's different this time?

Well, not much, really. Nikkei is a very solid source, definitely not prone to tossing plausible ideas around as actual reports. And of course, it's been such a persistent rumor because it makes so much sense: Sony is an important player in both the cellphone (with Sony Ericsson) and gaming worlds, though Sony Ericsson has been struggling in recent years. Now that Capcom and Square Enix are developing games for the iPhone platform, it's just about time for Sony to jump into the game and play a little catch-up.

The rumor itself is very vague: 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. [Reuters]