The electronics giant is looking into making a combination gadget that would meld its PSP gaming system with the mobile phones made by Sony Ericsson, its joint venture with Swedish electronics maker Ericsson, according to Reuters, which cited the Nikkei business daily.
Sony reportedly plans to put together a team as early as July to begin development of the new device. Sony no doubt has its eye on Apple's iPhone, which is already popular with consumers and is now getting more serious attention from developers as a platform for their games.
This isn't the first time rumours of this nature have circulated, of course. In 2007, Sony raised eyebrows with a patent filing that appeared to show a PSP-like device with phone capabilities. Previous moves in this direction have included the recently announced Sony Ericsson Aino, a phone that can stream pictures and video from a PlayStation 3, and BT's effort to bring voice and video chat to the PSP.
In the meantime, Sony continues to work on its portable gaming device. The PSP Go, which was unveiled at the E3 gaming conference, is smaller than its predecessors and has a slide-up screen. It will go on sale in the UK on 2 October for £250.