Can Sony stave off touchscreen gaming with their PlayStation Phone?

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I had counted Sony down, but I guess I can’t quite count ’em out: Engadget reports the once-dominant electronics giant is soon to release a PlayStation Phone, which, if successful, ought to help them reclaim some relevance in the gadget landscape.

It’s kind of an interesting gamble, as Apple’s iDevices are clearly dominating the microgaming space with their touchscreens. Will anyone still want to play pocket games using little physical buttons, and will Sony be able to deliver games in an easy, iTMS-like way? Stay tuned–Engadget’s claiming a 2011 or even 2010 release.

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