Could the PSP be used as a replacement for your phone, or will Sony introduce a PlayStation-branded phone with gaming functionality? Either are possibilities, according to comments from SCE and Sony Ericsson executives.

While Nintendo’s DS continues to sell like hotcakes with its gaming focus, Sony has clearly taken a more multifunctional/multimedia approach with its portable. The PSP can already play movies, music, display photos, and surf the Internet (all in addition to games of course), and at some point in the near future users may be able to add phone calls to the list of functions.

Although no official announcement has been made yet, it’s clear that Sony has plans to leverage its massive PlayStation brand equity among gamers looking at the phone market. The real question is whether the company intends to add phone functionality to the PSP, introduce an entirely separate PlayStation phone device from Sony Ericsson, or do something else entirely.

According to an interview in Japan’s Nikkei BP with Sony Computer Entertainment corporate executive Izumi Kawanishi, Sony hinted that going forward the PSP may become more and more of a network device.

“The PSP started off clearly with the position of a portable game machine,” stated Kawanishi, according to a partial translation by IGN. “However, looking long term, there’s the thought that it ought to become a portable network device. At that time, if there’s demand for an information terminal, it is possible to take it in that direction.”

In fact, for some users the PSP may even be able to replace the phone. “There is a possibility,” said Kawanishi. “I won’t deny it. Personally, I’m interested in it. Of course, it’s not the case that you can connect to wireless LAN everywhere, so you can’t call it a permanent connection. But cell phones are permanently connected. Cell phones get more interesting as their data transfer rate increases, and I think it would be extremely interesting to try something like that.”

Another possibility is for Sony Ericsson to introduce a cell phone with PlayStation branding and some gaming capabilities. In fact, according to Sony Ericsson’s senior vice president of Product and Application Planning, Rikko Sakaguchi, such a phone may actually be in the works. Sakaguchi cryptically revealed to CNET Asia that the company “is working on something” related to a PlayStation phone, but that “the surprise must be kept for the future.”

We actually think the cell phone route makes more sense and is more likely to happen, but it’s possible that Sony could attempt both. The mobile market is growing by the day, and with mobile gaming slowly taking on more importance Sony could do well to introduce its PlayStation brand to the phone market.

Phones are already multimedia convergent devices with music, ringtones, photos, games, Internet and more, and it seems that a number of companies are heading in this direction. Apple could actually be one such company. The latest buzz suggests that Apple will introduce its own cell phones in early 2007. Already rumored to be getting into the gaming industry with a portable, perhaps Apple will combine its own iTunes business with gaming on an Apple phone. That would create some very stiff competition for Sony, if Sony does indeed launch a PlayStation phone.

Via GameDaily BIZ

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