MARCH 4, 2010 • The Wall Street Journal reported that Sony Corp. is developing a new lineup of handheld products, including a smartphone able to download and play PlayStation games, plus a portable device that is a combination of a netbook, an e-reader and a PlayStation Portable, or PSP.  The new products are supposed to be launched in 2010.

Impact: Sony has had a long history of success in the handheld and mobile devices markets including the original Walkman and eventually a robust mobile phone partnership with Ericcson.  In some ways, the PSP install base pales in comparison to the heights of either the Walkman or Sony-Ericcson phones, underscored by tough competitors from Nintendo and now Apple. A smart phone device backed by an extensive library of PlayStation games could be an intriguing development in the race for mobile users.  In light of Nintendo’s recent announcement about the 3DS with 3D capabilities and considering Sony’s expected big push for 3D gaming on the PS3, it is highly possible the new products announced for 2010 could be 3D capable as well.