The PlayStation phone returns, Sony iPad-killer to launch this year?

Nintendo may be adamant that it isn't concerned by Apple's recent machinations but if a recent report by The Wall Street Journal is to be believed, rival firm Sony is taking no such chances.

"The Japanese electronics giant has a project under way to develop a portable device that blurs distinctions among a netbook, an e-reader and a PlayStation Portable," states the Journal. "The device is designed to compete against multifunction products such as Apple's coming iPad tablet."

Citing sources close to the company, the Journal goes on to claim that the device will follow the example of the underperforming PSPgo and will allow users to download games direct to their consoles.

Interestingly, it's also claimed that Sony is working on a new PlayStation smartphone (again) which will be capable of playing PlayStation titles - although whether these will be PSOne, PS2 or PSP is not yet known.

While the launch window for the phone is undisclosed, the report says we can look forward to the iPad-beating device this year.

Obviously, all of this has to be treated as a rumour at this stage, but with Apple about to take another bite out of the portable entertainment market with the iPad it's highly likely that Sony will take steps to solidify its position in the marketplace with new hardware.