There are so many points being missed here and there are so many people dismissing Sony as if it's some tadpole competitor.
Sony sells WAY more phones than Apple. According to
Reuters, even in a bad quarter they are selling 14m units.
The "phone" part of iPhone has been poor from day one. Lack of MMS, dropped calls, no standardised ringtone support, poor voice quality, horribly positioned microphone etc.
Professional video game developers are jumping on iPhone because it is extremely cheap and easy to develop for in comparison to other platforms. But this leads to poor quality software, because they aren't willing to dedicate the same resources to the development.
I'm yet to find a game on the App Store which comes anywhere close to being comparable to a PSP game.
PSP is also a far superior video playback device because it has a 16:9 screen. Apple continually ********s its customers by claiming that iPhone and iPod touch are "widescreen", yet with any 16:9 content you'll be seeing black bars or having to do a crop.
An iPhone 3G can be had subsidized with a contract in the U.S. for $99. I doubt there are many other 3G network phones with ATT that can be had for less than that price subsidized.
Whoops, yet another American blinded by their borders. Sony is a Japanese company. iPhone isn't doing much in Japan, and it is also vastly overpriced in many countries around the world. Can I interest you in an iPhone 3GS 8GB for £725 from the UK's carrier, O2?
The PS3 is hard to develop for and Microsoft has taken Apple's all-in-one solution and applied it to gaming.
Whoops, it was Microsoft that pioneered the ultra low cost, all in one development environment for independent developers and end users. They called it XNA and it came along a long time before anyone had even whispered "App Store".