Flint told the Financial Times the "technology behind such a device was still some way from being perfected." He also said, "We need to make sure that it is a credible phone and be sure we are justified in putting that identity on it."
That's actually a pretty good point. It's obvious the PS Phone would be Sony's third tier gaming platform, so how many people would really be interested in toting around yet another handheld gaming device? Wouldn't a VOIP service like the one in the works for Europe not only make more sense but also be cheaper on the wallet?