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Sony may combine a mobile phone with its Playstation Portable gaming platform, reports Reuters. It would combine functions of its portable game player with mobile phones made by Sony Ericsson. The development is seen as a way of better competing with Apple’s iPod and iPhone, as well as Nintendo’s DS.

Sony announced greater integration between its mobile and gaming units last month via the launch of a new Sony Ericsson handset called the Aino.

The device uses a system called Remote Play, initially developed for the PSP, that enables users to control and access media content on PlayStation3 via the phone. Aino also features an 8.1-megapixel camera with geotagging capability; 3G, Bluetooth and Wi-Fi connectivity; a physical keypad; and a three-inch touchscreen.

According to the latest Gartner figures, Sony Ericsson slipped to fifth place in terms of global phone shipments in 1Q09, as its market share declined to 5.4 percent compared to 7.5 percent in the year-earlier quarter.

Seven of Apple’s top ten iPhone applications are games, and mainstream game publishers have for some time been incorporating the iPhone into their plans.

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