I don't see anyway to sugarcoat this. With massive layoffs at Sony, coupled with Sony Ericsson losses of US$346 million having just been announced, there's never been a better time to branch out with a potentially lucrative and under used brands – like the PSP [PlayStation Portable)]. But according to MobileToday, Sony has refused the use of the PSP brand, stating that: "In the past, we have been keen that our product proposition lives up to brand promise, and we feel at the moment the technical specs are not high enough to put such a prestigious brand on a phone."
http://www.pocketgamer.co.uk/news.asp?c=0445241201&pk=33430117
They have literally denied Sony Ericsson the tools needed to turnabout their sales picture and in fact have hurt the PSP platform itself. The iPhone/iPod touch are already taking share away from the PSP, which badly needs a OTA distribution system.
This ranks with some of the all-time bad business decisions ever made.