Sony has coveted Apple's spot at the top of the handheld electronics for much of the decade, having positioned a wide variety of gadgets opposite the iPod. Now it seems they may be readying an answer to the iPad and the iPhone.

The Wall Street Journal reports that Sony is working on a device that's described as being part netbook, part e-reader and part PlayStation Portable. Sources within the electronic giant also report that Sony is working on a "PlayStation Phone," which would be capable of downloading and playing PlayStation games.

Sony has been trying to overtake Apple since roughly 2005, when they first introduced the PSP. At that time, the iPod could not yet play video, which appeared to give Sony's handheld a significant advantage. However, the UMD format proved to be a major achilles heel for the platform.