Sony to launch new PSP next week - report

Sony has plans to unveil a new PlayStation Portable handheld toy on January 27, and its popularly named Playstation phone will follow in February, according to two people who have been spilling the beans to Bloomberg.

The entertainment firm also has a strategy up its sleeve to hook up its handheld products to one another, as well as to TVs, Playstation consoles and other gadgetry, through the wonders of the Interweb - to allow sharing and cooperation will-nilly between its devices, one unidentified bloke is claimed to have said.

The touch-screen phone, seemingly dubbed, the Sony Ericsson Zeus will be unleashed at the Mobile World Congress shindig in Barcelona.

Sony is keeping quiet on the matter, but faces stiff competition from neighbourly rival Nintendo whose eye-boggling glasses-free 3D 3DS (try saying that properly and keeping your teeth in) is also due next month.

Bloomberg references a note from Tony Wible, an analyst at Janney Montgomery Scott in Philadelphia, who we can't help but cite because we enjoy his name: Nintendo and "the PSP2 will help revitalize the industry and help fend off digital threats from Apple devices that only sell games online," Wible wrote.