CNet reports that Sony is talking with major recording companies about providing downloadable music for the PlayStation Portable gaming device. While primarily a gaming device, the PSP has always offered multimedia capabilities such as movie and music playback. The device, however, has been hampered by rather closed standards such as the Universal Media Discs (UMDs) required for movies. If true, the move would increasingly align the PSP directly against Apple's iPod Touch and iPhone platforms. Apple's iPod touch and iPhone have become a surprise success in the mobile gaming market leading many industry observers to believe that both Nintendo and Sony are very concerned about the Apple's early success. Anecdotal reports peg the iPod Touch and iPhone demographics right up against the PSP's. This direct competition could explain this attempt by Sony to further expand the appeal of the PSP beyond gaming. Article Link: Sony Considering Music Downloads for PSP to Compete with iPhone?