Is this what companies do when they get too big? Like, there's too many divisions working independently from each other, so you end up with the Xperia Play and Playstation Vita strangely competing in the same space.
The idea of the Xperia device was good. Touch screen gaming is pretty weak overall. The thought of a controller being built right in seemed like a great fit. Unfortunately, they didn't execute very well with that idea.
The device is underpowered compared to the other Android phones. A majority of the playstation content is only compatible with the phone. IE: content you buy for your PS3 minis, PSP doesn't work on the phone.
Instead of a new Xperia, I'd rather see support for blue tooth controllers to be added into Android. Then maybe someone can make a shell of a controller to fit your phone into. Portable gaming achieved.