Well, clearly this device isn't officially endorsed by the big boys at Sony, but that didn't stop a small, presumably China-based manufacturer from cashing in the PlayStation brand. The amusingly-named PS3 Game Player comes with a form factor not unlike the PSP, but its graphical prowess seems to be a far cry from the official Cell Processor-powered home console from which it "borrows" its namesake.
Instead, what you get is a measly 3.5-inch TFT color display only capable of doing QVGA (320x240). On the plus side, this knockoff system boasts a 1.3-megapixel camera, handwriting recognition (touchscreen?), stereo speakers, TV-out, and "built-in games." That's right, there's no slot for you shove in any UMDs or PS3 Blu-ray Discs.
It's not quite the portable PS3 you were looking for, but you can be sure that this handheld -- complete with a Street Fighter-like video game -- can be had for much less than the real thing. www.mobilemag.com/content/100/345/C12685/