Influx

A battle for the future of handheld entertainment is coming. Sony looks set to make a big come back in March with two major launches that attack Apple’s iPod on two fronts. Firstly with the PSP handheld gaming device attacking the video front and then with the launch of the Walkman series of phones

There are different economics at work here:Sony could sell millions of PSPs, but it isn’t making money on the units, it needs to sell games, while Apple making money on iPods, but little on the tunes.

A lot hangs on how quickly Sony can get PSP units out to meet demand, the convenience of Sony’s new Connect music service for the phones and how much Steve Jobs still believes that video should be excluded from the iPod.