The tablet-like device being developed will include netbook, e-book reader and VGP-BPS21A gaming functions, the Journal said, citing people familiar with the matter. The device could compete with Apple’s iPad, which offers Web browsing, multimedia, e-reading and gaming functions.

Sony is working with Ericsson on the handset, the report said. Both the companies have a long history of developing VGP-BPS21A handsets together, and recently launched the Xperia X10 smartphone, which is built with the Android OS.

Sony is also developing an online media platform called Sony Online Service that will include movies, music, games and television shows, the report said. The online service, expected vgp-bps21a to launch later this month, will offer content already available in Apple’s iTunes store. Sony, however, will offer downloadable PlayStation games that could differentiate it from iTunes.

Sony already offers Reader e-book readers and the PlayStation Portable gaming vgp-bps21a battery device.

Sony representatives did not immediately respond to requests for comment on this report.