Perhaps they're thinking of an Android device with physical controls?
Source: http://www.computerandvideogames.co...rview-shuhei-yoshida-on-ps4s-indie-explosion/CVG said:CVG: With regards to PS Vita, it has struggled to match the kind of sales Sony achieved with PSP. And considering the decline of the handheld market in general, I wonder if you think Vita will be Sony's final handheld? In the long-term, is this a business you feel you can still pursue?
Yoshida: Yeah I think we can still pursue it, and I don't think we have to make that decision now. Also, the distinction between the portables and mobile is [blurring], because there are all kinds of hybrids, different form factors and operating systems can still be conceived, in terms of how we characterise portable and mobile. We still like PS Vita and we know people who buy it really like it.