It seems that several years of taking their lumps on the long road to mobile gaming success has hardened the boys and girls at Nokia just a bit, and they're ready to come out swinging. The target? Fellow European manufacturer Sony Ericsson, of course, which has been rumored for eons to be cooking up some sort of PlayStation- or PSP-branded handset to go head to head with the likes of Nokia's N-Gage service. The head of Nokia's games division went on the assault at a recent press event for its brand spanking new N-Gage client, saying "I'm not scared about anybody. The real question is how do they do it? Can they create a link between the PSP games and a phone? Can they do the multiplayer and online stuff? We've been doing this for two years and it hasn't been easy." In other words: bring it, Sony Ericsson, because we don't think you can do it. Kind of funny to be lashing out against a product that hasn't been announced (much less launched) though.
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I think one of the main concerns of designing a PSP phone is gaming controls. Sony has designed very good gaming controls in PSP so that should not be a problem. Sony just needs to make the standard PSP games compatible with the PSP phone.