Sony is considering a gaming/phone hybrid device as a direct competitor to the iPhone, according to Nikkei Business Daily (Via Reuters). Unless you’re new to the Sony Phone rumor mill, a gaming/phone hybrid has long since been rumored to be in development, but has been denied by the Japanese hardware manufacturer.

Sony currently develops mobile devices with Swedish partner Ericsson. In early 2009, MobileToday sources claimed Sony Ericsson had pitched the idea of a PlayStation-branded phone to Sony Corp, but was denied the rights to use the trademark.
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