The PSP2 is a $999.99 device, which, to me looks like a 3000. It may still use UMDs but I'm not sure. I know that it has WiFi and 3G capabilities. The PSP phone, is considerably cheaper (at least it should be, considering that it will be for the mobile phone market.) The iPhone was only, what? Maybe $400 when it first came out? Maybe cheaper. But still, If there is any phone that is more than $500, then it better have a pretty good App market and/or cheaper games. But, me personaly, would go with the PSP2. Might last longer.