Up there in the annals of gaming rumors alongside the HD Wii and the Blu-ray 360 resides the tale of Sony developing a PlayStation phone. Well, it looks like you may shortly be able to cross that last one off of the hoax list, as a report from the Wall Street Journal is claiming that the Japanese electronics manufacturer may finally be ready to announce the device. Citing "people familiar with the matter", the WSJ states that, due to increased pressure from companies like Apple, Nokia and Samsung, Sony may finally be ready to release a phone with the capability to download and play PlayStation Network games.

The WSJ goes on to say that Sony isn't limiting themselves only to developing a new PS phone, but is also actively developing a device with the capability of handling multiple functions, similar to Apple's upcoming iPad. Both products are supposedly set to launch at some point this year, although without confirmation of their existence, let alone details like release dates or technical specifications.

Sony is set to launch a new media delivery system in the U.S. later this month called Sony Online Service. It will use an iTunes-esque system to offer movies, TV shows, and older PS games to Sony customers. It seems like there could be some synergy between this new content system and a PS phone. Again, nothing has been confirmed from Sony's end on the new device, but one has to think that the WSJ would have sources that are relatively reliable. Perhaps an announcement is forthcoming? Like, at next week's GDC? Stay tuned.

[Source]