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Sony Ericsson "PSP" phone could threaten Apple's iOS game revenue

An unconfirmed report claims that Sony Ericsson is at work on a Playstation-branded Android smartphone with a new gaming ecosystem.

Published by Engadget, the report cites "a trusted source" for leaked details of the upcoming device. Described as a cross between "the Samsung Captivate and the PSP Go," the phone would use PSP-style controls instead of a traditional QWERTY keyboard. It could also include a 5 megapixel camera and a 1 GHz Snapdragon processor.

With a potential release as early as October of this year, the phone would pioneer both an Android dedicated gaming ecosystem and the long-rumored PSP phone combination.

The smartphone will reportedly run Android 3.0, also known as Gingerbread. A new area of the Android Market would be created specifically for games, which could be ported from the PSP or PSX library. These games could then be brought to other Android phones, provided they meet certain specification and control requirements.

For its part, Apple has recently been ramping up its focus on mobile gaming. The Cupertino, Calif., company is developing a Game Center social gaming network for iOS 4 that will provide a centralized friend system, leaderboards, and unlockable achievements. The feature was announced in April and is slated for release this fall.

In March, Flurry Analytics reported that Apple's share of the American mobile gaming market had grown from 5% to 19% from 2008 to 2009. Apple's growth cut significantly into the Sony PSP's market share, which dropped nearly half from 20% to 11%.

In April, Apple hired a new games editor, Matt Casamassina, for the iPhone App Store. According to Casamassina, he will "be leading the charge for games on the App Store."

Apple could also be looking to purchase a Chinese game developer to advance further into the mobile gaming market. In early August, rumors said a final deal with Handseeing Information Technology Co is "close," with an estimated price of $148 million.



83 Comments

mbarriault 16 Years · 237 comments

I'd rather not look at this as "lost revenue" but more as "strong competition". Competition makes products better. That said, this is Android (where the best stuff is only available on cutting edge and consumers have to constantly buy new phones to stay on the cutting edge), Sony (who seems to be making one majorly bad business decision after another), and PSP (which, let's face it, was a massive flop in almost every respect).

bdkennedy1 20 Years · 1458 comments

OOooooo that's gonna hurt. But Sony won't get it right the first time.

str1f3 16 Years · 572 comments

This is interesting but yet again points out the problems with Android. Every device has it's own design which game developers have a hard time developing for and will end up having bugs.

Another problem is Android users generally don't like paying for apps. Everybody likes to compare the number of apps but actual sales aren't remotely close. I've yet to hear any stories of an Android dev getting rich from their App Store.

This device might appeal to some teens but most don't care enough about gaming to have the design of the phone dedicated to it.

daharder 15 Years · 1580 comments

Personally, I never bought into Apple's declaration that their mobile platform was all of a sudden a suitable gaming system, so my expectations for Sony's effort is rather high given their storied history in this arena.

We'll See...