Lots of gamers have shown very little interest in the Xperia Play. I anticipate there will be a new version next year as there is with every other smartphone, and I see three basic things that Sony Ericsson can do to make the Xperia Play 2 far more appealing for gamers... 1. Replace the touch panel with actual dual analog nubs. We gamers dislike smartphone gaming precisely BECAUSE we don't want to have to use touchscreens to control movement and aim. We want our fingers to actually interact with the controls and get some feedback in return. 2. Stick a quad core A9 cpu + a SGX543MP4+ gpu + 960x540 resolution screen in the phone and release digital copies of Uncharted NGP, Little Big Planet NGP and Resistance/Killzone NGP on it. 3. Make it look like this... or atleast this... From a business standpoint, this makes a lot of sense. For Sony... Entering the smartphone market is EXTREMELY lucrative. The most Sony can charge for the PSP2 is $299. Apple gets $700 from AT&T for every phone that consumers buy from them for $200. Imagine how much tech Sony can pack into the PSP Phone and still rake in a massive profit with prices like that. In addition, the PSP Phone is more likely to sell to casual gamers that might not be interested in a big bulky PSP2. So there's a lot of money to be made selling games to these customers that Sony normally can't reach. For Consumers... Lots of people prefer all in one devices. I only have so much room in my pocket. Between my keys, wallet, cell phone, camera etc, there really isn't any room for another portable device. This is why I rarely have my DS or PSP with me when I'm out of the house, where as I always have my iPhone with me, and do my outdoor gaming on that, out of neccesity. Also, consumers can get a better deal thanks to subsidies. I'm not looking forward to plopping down $300 on a PSP2, and when I do, I'm going to have to justify that purchase to my wife. But buying a cellphone every 1.5 years is seen as a neccessity. I always sell my old cellphone on ebay for $300, and use that money towards getting my new smartphone, and my wife is always happy about it. Meanwhile, Sony could well sell their PSPhone for a price of $99, or even for free, and still rake in far more cash than what they can charge for the PSP2. Sony could give away PSPhone's for free, and they would still be getting $400-500 from the cellphone carriers, more than they get for the PSP2. Assuming that the PSP Phone looks like the one in the OP and is just as well thoughtout/designed as the iPhone and is loaded with fantastic games, which would you have an easier time justifying to yourself? Buying a $300 PSP2, or getting a PSPPhone for free or for $99 when your contract runs out.