TOKYO ( TheStreet) -- Sony ( SNE) is taking on Apple ( AAPL), developing a new lineup of handheld products, including a smart phone capable of downloading and playing videogames, a report says. Sony, the Japanese electronics giant, also is developing a portable device that shares characteristics of netbooks, electronic-book readers and handheld-game machines, designed to compete against products such as Apple's upcoming iPad, people familiar with the matter told the Wall Street Journal. Sony's new products are targeted for launch in 2010, although many details such as price and certain specifications have yet to be finalized, the people added. Sony's new media platform, temporarily named Sony Online Service, will differentiate itself from Apple's iTunes by allowing a wide range of devices to tap into its catalog of games, mainly older titles released for the original PlayStation. Sony also is working with Sony Ericsson, a venture with Ericsson ( ERIC) of Sweden, on the new smart phone as the devices become a key area of focus to the company's overall strategy, the Journal reports. Follow TheStreet.com on Twitter and become a fan on Facebook.