Because the world needs more phones? No, that’s probably not it. But maybe the world needs a more sophisticated game playing device that can also make phone calls. Engadget has what it says are pictures of the new Sony device.

It’s supposedly going to launch with a dedicated downloadable games store. It’s interesting to note that besides this Engadget story, there was word yesterday that prices on the PSP were dropping from $249 to $199. That could be an indication that space is being cleared for a PSP phone. I continue to think that for young people, the idea of a device that plays really high level games that they can also use to text and call would be very successful. I wonder if the Windows phone could be that, given the Xbox integration.