Sony is preparing a line of products to compete with Apple’s growing stable of portable devices with an attempt to leverage their PlayStation and PlayStation Portable brand, infrastructure and ecosystem.

According to the Wall Street Journal, the new lineup will include a smartphone capable of downloading and playing PlayStation games and a portable device that “blurs the distinctions among a netbook, an e-reader and a PlayStation Portable.” The former squarely targets the iPhone while the latter, the iPad. The new products will launch in 2010. More, including video after the jump.