PSP + Mylo + Walkman
Not that difficult, they clearly have the technology and a lot of pre-existing development work. They need to combine these efforts and reduce fragmentation in their product portfolio.
Flash and downloadable games are the only way to go today. They take up less space, use less power, and aren't expensive enough to be a deal breaker. We live in an age of instant gratification and Sony can provide, if they get their act together.
As a remote, the PSP should be able to control other Sony AV products and VAIO computers. This would work via the Bravia internet link or the PS3 if they ever updated it's HDMI firmware. Synergy is the name of the game here and the more they can tie products together the better. How about a PSP app for the second life contender, Home. While they are at it, they should create a PC app (free with any VAIO) for Home.
I personally believe that what Sony needs most is not an iPod killer, but an iTunes killer: Apple has been very successful with its Trojan Horse strategy, handing out well designed software for free and leveraging it into an entire product line. Sony's got the CE products but not the software.
The PSP should also be able to do everything that the PS3 dualshock controller can: Nintendo was very sucessful using the GBA as a secondary screen in games, and I've heard rumors of a PSP being usable as a rearview mirror in GTA. This only scratches the surface of what is possible, but the wow factor would be significant, and the PSP needs all the attention it can get.
Biting the hand that feeds IT
