Rumors once again have come alive surrounding the topic of the possibility of a PlayStation phone. With Apple’s iPhone 3G making mobile gaming even easier, news from Japan says Sony will open a new department exploring a “cell phone-game gear hybrid”. Seven of the top 10 apps in Apple’s Appstore are games and developers are working on making games compatible for the iphone. Many users are emulating PlayStation games for the iphone.

Meanwhile, PlayStation fans can look forward to the release of the PSP Go. It will feature a 16GB HDD instead of the UMD drive, will be lighter than the PSP-3000 and the Nintendo DSi, has a 3.8inch screen (compared to the 3.25 of the Nintendo DSi, and will be Bluetooth and Wi-Fi capable.

The PSP is expected to ship October 1st with a $250 price tag.