This is an interesting rumour, and if it is true it could be a device worth looking into for mobile music as well.
Appleinsider claims that this ‘PSP Phone’ could be like “the Samsung Captivate and the PSP Go,”.
The phone would use PSP-style controls instead of a traditional QWERTY keyboard. It may also include a 5 megapixel camera and a 1 GHz Snapdragon processor.
With a potential release as early as October of 2010, the phone would pioneer both an Android dedicated gaming ecosystem and the long-rumored PSP phone combination.