Timstuff
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*mock up image is mock up, BTW
Here's what we can tell you about the hardware: if you're a gaming fan, this is exactly the kind of phone you've been waiting for. The device is described as cross between the Samsung Captivate and the PSP Go -- in other words, it's a landscape slider with game controls in place of the typical QWERTY keyboard. The D-pad is here, but instead of the small joystick, the device will have what was described as a "long touch pad" for analog controls, along with standard PSP buttons and shoulder buttons. The phone has a large display, described as being between 3.7 and 4.1 inches with WVGA or better resolution, a 5 megapixel camera that we're told might not be final, and it'll likely have a 1GHz Snapdragon CPU on board. The phone is mostly black with some silver highlights, and the gamepad area is white / silver in color. Apparently it's currently branded as a Xperia device, but it looks like it will carry PlayStation branding as well. Those who've seen the phone say it looks "pretty damn sexy." The mockup above probably doesn't do the actual hardware justice, but it should give you an idea of what you'll be dealing with.
More at Engadget:
http://www.engadget.com/2010/08/11/exclusive-sony-ericsson-to-introduce-android-3-0-gaming-platfor/
I'm not 100% sure how well a touch pad would work as a replacement for an analog stick, but if they can find a way to simulate the feel of joystick resistance without compromising the controls then it could be a good substitute (as long as it's better than the crappy "virtual joysticks" on the DS and iPhone). I've been wanting something like this for a long time, and this could be the shot in the arm that the PSP needs. Hopefully it will be fully compatible with the entire PSP Go library, because that's already a fairly small selection and it would be kind of stupid if the PSPhone's library was even smaller. Also, this thing supposedly has a 1GHz processor, which would mean it's actually a lot more powerful than the original PSP which could potentially allow for near-Xbox quality graphics, or possibly even better!
I had been considering upgrading to a PSP 3000, but I may hold off on that for a while and see how things go with this phone device. If it's all that it should be, I may hang on to my PSP 1000 for my homebrew needs and make the jump to the PSPhone for new games. It sounds like it could be a pretty slick device! Could it be a challenger to the iPhone? Heck if I know, but i'd certainly rather play games with a real D-pad and buttons than a touch screen. Also, the Android's potential for homebrew apps like console emulators could finally mean an end to the war between Sony and PSP homebrewers.