Sony is busy developing a technology that will have neck-to-neck competition with the iPhone and iPad. Recently the Wall Street Journal wrote an article on it saying that this new technology that is being developed at Sony will include a smartphone which will be capable of downloading and playing video games.

Apple is trying to dominate the mobile handset market and on the other hand Sony is growing its strength in the market day by day. The smartphones that are due to be released in the market has also some type of threat to these companies as it will take consumers away from the laptops and netbooks.

In the latest try of Sony, the Japanese electronics giant, a very portable device will have the best elements of the netbooks, the e-book readers and also the gaming consoles. It may be called “PlayStation Portable”, a rumour name.

The concept of portable playstation have swirled for years. Sony made use of the Sony Ericsson handset division for developing mobile phones that are capable of downloading video games and playing the PlayStation games on their handsets.

Rumours are also there that Sony may release the device in the open market by this year. Still the specifications and price of the device is unknown or may be it has not yet been finalised by the company.

Sony is also going one step further in the industry. It is preparing itself for its own version of Apple’s iTunes store. This platform, still in the tentative form, is named as Sony Online Service. Here, the mobile users can download movies, music and television programmes. Consumers can also download older games that has been earlier released for the original PlayStation console.

The Wall Street Journal also quotes analyst Noobuo Kurahashi: “That’s the vision, but it’s still not quite clear what specific steps Sony will take to achieve that, especially when iPad and other highly capable mobile devices are crowding the market.”