Update

A recent news report made by BBC provides a few more details on the PSP phone project.

In the beginning the software will only allow communication between PSPs and some BT phones, however the capabilities will then be extended to PCs, fixed lines and mobiles. The service will also only be offered through a BT home internet connection or through a BT Openzone Wi-Fi hotspot.

End Update

Plans to add “wireless broadband communications functions, including high quality handheld video calls, voice calls and messaging" to the Playstation Portable were announced yesterday by BT and Sony.

Handheld Sony PlayStation With Webcam

Well, clearly this device isn't officially endorsed by the big boys at Sony, but that didn't stop a small, presumably China-based manufacturer from cashing in the PlayStation brand. The amusingly-named PS3 Game Player comes with a form factor not unlike the PSP, but its graphical prowess seems to be a far cry from the official Cell Processor-powered home console from which it "borrows" its namesake.

Instead, what you get is a measly 3.5-inch TFT color display only capable of doing QVGA (320x240). On the plus side, this knockoff system boasts a 1.3-megapixel camera, handwriting recognition (touchscreen?), stereo speakers, TV-out, and "built-in games." That's right, there's no slot for you shove in any UMDs or PS3 Blu-ray Discs.

It's not quite the portable PS3 you were looking for, but you can be sure that this handheld -- complete with a Street Fighter-like video game -- can be had for much less than the real thing.

Sony Updates 2GB Memory Stick Entertainment Pack for PSP

May 8, 2007 - Sony is introducing another version of the 2GB Memory Stick Entertainment Pack for the PSP (PlayStation Portable) system. Available this month, the updated version of this product - MSX-M2GSEP2 - is bundled with an installer DVD loaded with the movies "Talladega Nights: The Ballad of Ricky Bobby," "Spiderman 2," "Hellboy" and "S.W.A.T." .

PlayStation Portable given a make-over

The PlayStation Portable (PSP) gaming device is being transformed on the back of a new four-year deal between BT and Sony Computer Entertainment Europe (SCEE).