According to CNET News, Sony is in talks with different recording companies to provide music for its PSP.

However, these sources told that the talks regarding music downloads were preliminary and right now no deal has been signed yet. PlayStation Network is Sony’s promising multiplayer gaming and digital download service and now Sony is looking to offer music downloads on it. PSP will directly come into competition with different multiuse players including the iPhone.

Many believe that PSP can effectively play videos, music and games, but it’s not fully utilizing its potential yet.  With its array on nice games and bigger screen, the PSP can compete with devices like the iPod.

Earlier Sony was found to have a walled-garden approach towards the content and to watch videos on the device, the company requires physical media support and its customers need to purchase Discs, mini DVDs and other such stuff that was only limited to PSPs.

During the last few months, the gaming sector seemed to be flooded with rumors including that Sony was considering releasing a totally changed PSP. There were some reports which showed that there will be a larger screen as well as slide out controls and it wouldn’t play UMDs any longer.

According to Wedbush Morgan Securities analyst Michael Pachter, “it is quite sensible to believe why Sony is trying to get more and more content for their device.”

“Sony is looking to offer it, but at present a Sony PSP game can’t be downloaded to an iPod Touch, as the OS do not allow this,” he adds.

Sony’s first digital music player was Remember the Music Clip and in it the company seemed to ignore the MP3 preference that was a much desired option for a large number of consumers.

Source: news.cnet