Is Sony Working on New Gaming Machine?

According to the Wall Street Journal, it seems that Sony has been keeping a secret from the gaming community.  In a recent story about portable gaming and 3G connections,  WSJ briefly mentioned a new portable device that Sony is developing.  From the article:

'Meanwhile, Sony is developing a portable device that shares characteristics of handheld game machines, e-book readers and netbook computers, according to people familiar with the matter. Some Sony e-book readers already come with 3G connections but it is not clear if a new wireless gadget will use carrier networks.'

If there is any truth to be found in that statement, it seems that this new device is being designed to take on the likes of the 3DS and even the iPhone. What do you all make of this interesting little discovery?

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