Although the PSP has seen some relief in the form of the PSP 3000 hardware update, the console has been struggling to gain any ground in the new handheld wars started by the iPhone.

One potential avenue of rescue for Sony’s machine is the rumoured Sony Ericsson PSP phone (a system we imagine wouldn’t be at all unlike the N-Gage), though a report from MobileToday now suggests Sony has refused it use of the PSP brand.

“In the past, we have been keen that our product proposition lives up to brand promise,” a Sony spokesperson said, “and we feel at the moment the technical specs are not high enough to put such a prestigious brand on a phone.”

Indeed any PSP phone would have a lot to live up to in terms of functionality, but the concept is undoubtedly solid and could reposition the PSP as a serious contender for N-Gage, and could help Sony recover a lot of ground lost to Apple.

For the time being, however, this landmark device is not to be.