Sony Corp is gearing up to take on the Apple iPhone in the smartphone world by launching a new smartphone that will download and play PlayStation games along with a multifunction device which is said to blend a netbook, mobile phone and ereader to challenge the iPad reports an article over on the WSJ.

Apparently both new Sony devices will work with Sony’s new online media platform called Sony Online Service, which Sony is expected to launch in the US this month and is seen as a challenge to the Apple iTunes Store.

People familiar with the subject say that Sony is working with partner Sony Ericsson to deliver the new smartphone, and Sony is taking a more active role in the developing of mobile handsets due to the centralisation the smartphone has become to the company’s overall strategy.

There’s no word on just what the new Sony smartphone will look like, what the specifications are or estimated pricing at the moment, but they are looking to launch this year. We have a video interview about the new Sony smartphone for your viewing pleasure below, so check it out and see what you think.