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This image was made up, but I think it really shows how Sony could easily incorporate the PSP into a phone.  

What do you think?

Actually, it doesn't show how easily it could be done! That would be extremely difficult, considering the smaller form factor than the current PSP, and the addition of cellphone hardware, the slider, and the programming required to make it all work together seamlessly, all while making it at an attractive price point (we've seen what the PS3 did at a high price point, even with control of their market). Throw in the fact that it would now be competing with the iPhone, not just the DS Lite, and that Sony doesn't have control of the cellphone or handheld market, add in the limited market for this kind of device, and you've got a really awesome concept that would do nothing but lose money for Sony. I would consider getting one, if the price was right and the rest of the features were nice. (WiFi/3G/Browser Rendering/Exchange/etc)

I think I remember reading an interview with some guy from Sony responsible for their mobile phone department. He mentioned something about how they were always exploring the possibilities of creating a PlayStation phone but that it wouldn't be as simple as putting Walkman branding on their phones as they've done. They also didn't want to create a sub-par product that would simply make use of the popular PlayStation name and then disappoint.

Not to mention that PS phone rumors have been around for ages now so I'm sure that it will be coming at some point in time and Sony Ericsson's VP of stuff that I'm too lazy to type said that they were actually working on something relating to it so I'm sure Sony is interested in it. But with the iPhone now and rumors about Apple wanting to get into games, it could be a tough sell for Sony. We all saw what happened to the N-Gage, but in all fairness the N-Gage was flawed right from the start (making people remove the battery to change games?!).

It looks like a Chocolate.

Sort of, but aside from the glossy black finish I wouldn't say so.

I've had a number of Sony Ericsson phones (have one now), and they always have really bright screen that run at excellent rez, so that would be right up the line with a PSP phone.

I wasn't aware that many (any) Sony Ericsson phones had a resolution greater than 240x320, which is a far cry from the PSP resolution (480x272).

Now if they are looking at using one of their PDA's (which sometimes have higher res screens), and packing a phone and PSP, you are looking at one very expensive, risky project.

Are Sony and Apple on good terms? It would be interesting to see Sony lease out the PSP functions to package it in the next iPhone/iPod. THAT would be an expensive device. If Apple really wants to get into the gaming world, and the PSP isn't fairing well, that's the way to go.

that would be a very interesting concept actually. but liek Joker said, Sony doenst have the market on the portables yet, and competing with the iPhone would be extremely difficult.

I guess I wasn't clear with what I was trying to convey.  When you look at a particular Sony Ericsson phone and compare it to another brand phone of similar cost, you generally see that the Sony E has a much brighter/clearer image.  So we know they can do that well.  I think we've seen with the PSP that they have the ability to make an amazing screen, and I don't think it would be hard to incorporate that into a future phone.

Also, the PSP has been making great strides pertaining to sales, so that also makes something like this more of a possibility.

BTW the new Sony Ericsson X1 has a screen resolution of 800X480.

source for X1 phone info

I still have and love my iPhone to death though I'll be trading up for one of the newer 16GB models. This mock-up does look very nice but I'm with Joker on this one. It would probably costs way more than anyone would be willing to pay for it and at that price it would also still probably be losing money as well. Not to mention that would be one beast of a phone to get all of that in there. It'd be like holding a boombox to your head and walking down the street listening to music. Oh, weren't the 80's fun?