Some blackberrys and the G1a have a whole dedicated keyboard on their phone. Dedicated buttons aren't a obstacle. A touch based keyboard with dedicated button layout similar to the PSP Go isn't going to be a detriment to the PSP phone.
You and I are probably seeing different devices in our heads - if an elegant phone materializes complete with shoulder buttons and slide-out gaming pad in a form factor that consumers don't consider misguided, I'll consider myself corrected on this point. I, however, would never buy it to be my primary communications device for reason 'b' in sentence 1 of my above post.
Furthermore, you're not buying a PSP phone strictly for gaming but the advantage is you get a true handheld on your phone.
Who is that an advantage to though? I really think we need to address in full the target demographic, what their priorities are, and who is funding their phone purchase.
Its make no sense for Sony not to venture into this territory. Out of all the competitors of the iphone, MS and Sony make the perfect companies to enter into the competition. Sony builds phones, mp3 players and handhelds and sales apps through a dedicated online service. MS builds mobile OSes, the Zune and also has an app store. Its illogical for them not to enter the fray because most of the infrastructure (software and hardware) is already built out.
Honestly I find it surprising you mention MS as a candidate to enter the space, and in the same thought point to their mobile OS. They are one and the same - MS is already
in the space, and was for much longer than Apple. It's not MS that needs to come up with a competitor, it's Apple which actually did - to MS, Blackberry, Symbian, etc... it's now MS playing catch-up... which they are, via Windows Mobile 7.
As for Sony, it's wrong to think of them as having a phone division, music division, and gaming division all with seamless leadership. The phone business is a J-V, the music division was as well until recently, and the gaming division has always done its own thing. It's only recently that focused synergies have been explored, and honestly, how would one rate those efforts? Results are slow to come, that's my take, especially wrt to this multi
multi year PSN rollout. In fact with Sony let's skip the 'obviousness' of the phone altogether, and point instead to the obviousness of a robust digital music player with corresponding robust content delivery system. They had every reason in the world to have the 'Walkman' name be the name that 'iPod/iPhone' is today, but they dropped the ball back at the beginning.
They have to compete because ultimately I believe smartphones are going to be the ultimate device and the device that most people can't live without. The whole dynamic for entertainment has literally shifted from the living room into your palm. Sony nor MS can afford not to enter into this market. In fact, they already compete in the market, so whats the problem with being more synergistic with their product lines.
Yes, smartphones are going to be the device that most people can't live without. Whereas handheld gaming devices, definitely people can live without. Which is sort of my point really. Sony and MS are both
already in this market, it's just that a purposed gaming handheld has nothing to do with it. MS via OS as they have always been, and Sony via handset manufacture. Think of SonyEriccson as a Vaio in the phone space rather than as an SCE.
I remember reading that ATT was paying more $700 for each Iphone and selling at $299 to consumers. There is no way Sony or MS could afford to subidize at that great of level. Apple can afford to release newer faster version of the Iphone because its not eating the subidization, thats the responsibiites of AT&T. Secondly upgrading the GPU wouldn't be necessary and upgrading the CPU wouldn't be problematic if the phones prove to be successful. Its not like the Iphone get upgraded graphics every year and break software compatibility with old apps to the point thats patches can't be managed.
Two things. Firstly, the outrageous subsidies at the phone's launch are actually part of my original point: carrier exclusivity agreements and diverse hardware. So, if the PSP phone is available "only on T Mobile" for the first year or something, is that a benefit to Sony? By the way, do you see them as being the content gatekeeper in this scenario, or do you see open development? I'm just wondering where you see the PSP phone making its money. Back to this though, $700 was obvious insane money-grabbing on Apple's part as well - a price that could only be commanded due to promised exclusivity in tandem with the insane hype of the thing. Sony is not getting $700 for a PSP phone, that much is for sure.
If the Iphone and Android can exist with the dynamics of the cell phone market, why would it be difficult for Sony and MS who already operate in this market? Whats inherent about having robust gaming capabilities that makes competing difficult?
I just don't see where the iPhone and Android are distinct from Sony and MS - MS7 (and 6.1, 6.5) is to Android and iPhone as those two are to each other. As for Sony, yes, they are putting out an Android handset soon. I guess I'm just not following the consternation here. But I would counter to the premise that, what is inherent to a gaming-centric phone that a similarly spec'd "non" gaming phone would not be able to achieve? What is the effort Sony would put into its mobile games library that would render similar games impossible on similarly spec'd competing handsets?
I personally think that Sony's efforts in this space have to be via a branching and extension of the PSN network/platform as a value add to its products. And the more robust they can make it, the more of a positive feedback loop it will create. Down the path of dedicated niche hardware lies danger.