The iPhone's arrival almost three years ago changed the landscape of the mobile gaming world, not to mention the wireless phone market.

So it's no surprise that a company like Sony, maker of the ever-popular PlayStation gaming console brand, would have a strong interest in claiming back some of that turf. It's also no surprise due to the simple fact that we've heard rumors of a PlayStation phone for years now.

Nevertheless, sources "familiar with the matter" say that Sony is indeed looking to square-off against Apple with a new line of portable devices --including a smartphone -- before the end of this year, The Wall Street Journal reports.

With Sony Ericsson sales declining by nearly 50% last year, Sony really needs a homerun right about now to have even a sliver of a chance at staying relevant in the market.

Sony CEO Howard Stringer is said to have quite the master plan to turn things around for the ailing company, and these devices are reportedly a major part of that plan. The idea is to have a line of products that all access an online media network a la Apples iTunes and App Store.

This new Web-based service is supposedly being referred to internally as the "Sony Online Service". Very original, we know. Hopefully, a new name is christened at launch, because while this one definitely get's the point across, those initials spell out a tale about the company that everyone knows, but that Sony would likely rather not advertise.

There are no specs or specifics confirmed at this time, and Sony spokespeople are declining to comment. We will bring you more details as they develop.