Sony is preparing new handheld products to compete with Apple’s iPhone and upcoming iPad, according to the Wall Street Journal. They are reporting that Sony is prepping a “smart phone capable of downloading and playing videogames,” in addition to “a portable device that shares characteristics of netbooks, electronic-book readers and handheld-game machines.”

No details on whether the smart phone would be a PSP-branded machine, but Big S certainly has an interest in defending its mobile device business. For Sony, as a manufacturer of both phones and portable gaming devices, Apple is becoming an increasingly formidable competitor.

via Kotaku