Sony, Skype calling gamers,PSPs,VoIP

Newer PSPs will be able to make Skype calls from anywhere there is a WiFi connection.The consumer electronics industry has for many years now tried to shoe-horn a game (some would say game-like) experience on the mobile phone device, but this year, Sony swims upstream in the same waters. It has taken the PSP handheld game platform and turned it into a mobile phone -- albeit with limitations. But the value proposition for consumers is win-win.

The consumer electronics industry has for many years now tried to shoe-horn a game (some would say game-like) experience on the mobile phone device, but this year, Sony swims upstream in the same waters. It has taken the PSP handheld game platform and turned it into a mobile phone -- albeit with limitations. But the value proposition for consumers is win-win.

Sony has partnered with eBay's Skype division and developed a portable version on the VoIP service for the PSP, effectively turning the gaming handheld into a Skype phone -- with the same functionality, as well its limitations.

Here's what we know:

In about 1-2 months, owners of the newer PSP model (the P-2000) will be able to download a firmware update and secure a free application that will allow users to make free PSP-to-PSP and PSP-to-PC calls so long as both parties are in a WiFi hotspot. PSP owners with the Skype firmware update can also make calls to conventional land lines (or cell phones) off the Skype network, however, a per-call charge will be assessed.

Another option, for an additional fee still yet to be determined, PSP owners can also secure a phone number that Skype users on either PCs or portable Skype phone owners can use to call in with. We were told the phone plan would be sold on an annual basis, but again, many of the PSP-Skype details, including pricing of additional services, had not been determined.

Exactly as the Skype service operates in its native PC environment, PSP users are free to call others regardless of location. All that's needed in addition to the firmware update is a PSP-compliant microphone and ear buds. The demo station product specialists on the show floor had rigged a solution using remote control cable -- plugged into the video out jack on the PSP -- and itself connected to the PSP mic for a solution that completes the PSP Skype equation.

Unlike Skype users who tap the service from their PCs, it's not possible to instant message when using the PSP. But other than that shortfall, most of what PC Skype have at their disposal, such as a contacts list and call history line-up, are all available via the interface (with options appearing in the Network XME).

Sony says interest in the service is running very high, though it's not clear exactly who Sony is hoping to get on board -- teens, who could be persuaded to adopt the PSP as a phone replacement, or older consumers looking to shave pennies and bucks from their phone bills.

As far as how the partnership could impact the traditional carrier networks, analysts GameTap spoke with praised the Skype option, with one, Yankee Research analyst Michael Goodman calling it potentially "disruptive" to carriers.

The immediate upside for Sony is a bit murky, given the service is a value-add and offers no revenue stream for Sony, but one this is certain -- the PSP-Skype configuration drew some of the Sony booth's biggest crowds.