Sony may have brought us the Walkman, but Apple has been dominating portable music players in recent years with the iPod. With the release of the iPhone and iPod Touch, Apple is pushing further into Sony's territory with mobile gaming. Apple's AppStore has even started to attract major game developers.
The PlayStation Portable (PSP) has sold over 50 million units in the last four years, but Apple is quickly catching up, with 40 million video-game-capable units sold in only two years. According to the Nikkei Business Daily, Sony intends to compete directly with Apple's iPhone with its own mobile phone.
The company is forming a project team this July to develop a new product that combines the functions of the PSP with Ericsson's mobile phone technology. Sony has also reportedly been discussing music distribution via the PSP with major record companies.
This could create a decent competitor for Apple's iTunes as well as the iPhone and iPod Touch.Large game developers id Software, Capcom, and Square Enix Holdings have all offered gaming software on Apple's AppStore. The Sony PSP and Nintendo DS stand to lose market share as functions such as music playing, gaming and phone calling are all integrated into one popular device such as the iPhone.