Sony is nearing a deal to wrest full control over Sony Ericsson, the 50-50 joint venture created a decade ago, according to the Wall Street Journal.
The PlayStation maker hopes to integrate its smartphone business with its gaming, tablet and PC units to cut costs and better synchronise its product development strategy, sources supposedly familiar with the matter told the paper.
According to analyst estimates, a buyout of Sony Ericsson, which is the world's sixth-largest mobile phone manufacturer, could cost between $1.3 and $1.7 billion.
The news follows April’s launch of Sony Ericsson’s Xperia Play, a game-focused mobile carrying PlayStation branding. While Ericsson had been keen to create a PlayStation phone "for years", the report’s sources claim Sony executives had long been resistant to the idea.
As well Android-based games and emulated PSOne titles, Xperia Play will support games created for the PlayStation Suite platform, which was announced in January. At the time, Sony executive vice president Kaz Hirai said the rise of smartphone gaming meant that “the environment surrounding portable gaming has undergone a radical transformation since the launch of PSP”.
“We envision PlayStation Suite as an initiative that is essential to the world of portable entertainment,” he said.
Sources: Wall Street Journal (subscription) via Gamasutra