PlayStation Phone 'Zeus Z1' caught on video again, this time you can actually see it (update) -- Engadget
Engadget has video of a playstation phone prototype. Yay, I guess. Is the market asking for this? Between iPhones and DSes I don't see a compelling reason to pick up a PSP. If this were the PSP2, that would be a different story.
The only thing that would make this interesting is if carriers would give away phones to get people to sign up for service. Sony probably won't give up that hardware money though. I am pretty sure that you can't get an iPhone for free with a plan, but this latest version of the PSP is no iPhone.