Sony Readies Gadgets to Rival Apple

Threatened by Apple Inc.’s (AAPL) growing stable of portable devices, Sony Corp. (SNE) is developing a new lineup of handheld products, including a smart phone capable of downloading and playing PlayStation games, according to people familiar with the matter. The Japanese electronics giant also has a project under way to develop a portable device that blurs distinctions among a netbook, an e-reader and a PlayStation Portable, or PSP. The device is designed to compete against multifunction products such as Apple’s coming iPad tablet, these people said.

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