It's a sad day for PSP Phat owners. Sony's just pulled the drain plug for all those still reveling in the tub of dreams for Skype on the PSP-1000, otherwise known as the Phat, and claimed that efforts to integrate Skype to the original PlayStation Portable model have been abandoned. The consumer electronics industry giant says that the PSP Slim & Lite is the only target platform for PSP Skype because of its larger memory banks. Check out the full article for more details.

We reported yesterday on the much-awaited Leipzig Games Convention (GC), and how Sony's David Reeves said there would be some big announcements to be made in the upcoming event with regards to the PS3 and the PSP.

The MCVUK report we cited in yesterday's post indicated the possibility of a European PS3 price cut, as well as video-on-demand services and Freeview TV in store for UK. However, Sony's Corporate Communications Nick Sharples declined to comment, saying that they do not comment on mere rumor and speculation.

As most of us already know, Sony has a penchant for denying or declining to comment on rumors that eventually turn out to be true in the near future anyway. With that said, we'll probably have to wait and see what 'fireworks' are in store for us in the Leipzig event.

This is a follow-up to our report the other day that Sony recalled all of Netherlands PSP supply because of plans to replace them with "unflashable ones."

Despite many confirmations from various sources and even testaments from QJ.net readers, Sony Computer Entertainment Europe's Nick Sharples maintained that no such thing occurred. While the SCEE Director of Corporate Communications admitted that there's a supply issue in the said region, Sharples commented that this is due to an increase in demand brought about by recent price cuts.

He even referred to a recent statement by David Reeves where the official uttered that PSP sales have surged by 40% across the PAL region. The following are Nick Sharples' exact statements about the matter,

Following the recent price cut of PSP, sales have increased dramatically and retail stocks are temporarily low, which is why some of your readers may be finding it difficult to source a PSP at the moment. There is nothing wrong with the PSP, in the Netherlands or anywhere else...

Lastly, when the homebrew scene was brought up and asked about Sony's official stance, Nick Sharples simply declined to comment.

Sony Computer Entertainment Europe (SCEE) might be letting go of 10% of their employees due to redundancy and high overhead costs. This came from GameDaily BIZ which received a tip from a "reliable game industry source". Destructoid later released an alleged leaked memo from Sony regarding the lay-offs, pegging the figure at 8.4%. That's about 160 of the 1,900 currently employed at SCEE.

Nick Sharples, SCEE's Director of Corporate Communications, said that the proposed changes are being considered to streamline operations and reduce costs. Included in the plan, is the dropping of the employees. He justified the current proposal of laying-off the 160 employees.

In order to maintain our leading position in the market we sometimes have to make difficult business decisions [such as letting go of some employees]. The management of the company has concluded that we need to change our structure, streamline and strengthen our business operations – and that our cost base needs to be significantly reduced.

It has been confirmed that no-one has been laid off...yet. Suffice to say, a lot of people from SCEE are pretty nervous about their jobs. Is this an indication of bigger problems for SCEE or simply a case of restructuring? More on this as is happens.

If you'd like to see the alleged leaked memo, click on the Read link below.