Is Sony working on a PlayStation tablet too?

Lately, Sony's been spreading its PlayStation brand a little thick — on the Xperia Play, NGP and Android smartphones. Word on the street is that Sony is working on a full-blown PlayStation Certified gaming tablet to take on the iPad's runaway gaming success. No doubt unhappy with how Apple's grip on portable gaming is growing, Sony is reported to be working on a PlayStation tablet tentatively called the "S1." Tech blog, Engadget has confirmed that the S1 will be a PlayStation Certified device — meaning it will run Android 3.0 Honeycomb and play classic PS1 games. Unlike Android smartphones that are PS Certified, a PlayStation tablet with a larger touchscreen would make virtual onscreen buttons much easier to use.
Specs for the S1 are said to include a 9.4-inch touchscreen with 1280 x 800 resolution, a Tegra 2 processor, front and rear cameras and one USB port. The S1 is said to be completely built around "Qriocity, Sony's music, games, ebooks and videos on demand service that's just been launched in Europe." Think of it like Sony building an entire ecosystem, just like the way Apple's devices all play so well with iTunes.
The S1 will reportedly be sold for $600 and be released around September. What do you think? Would you buy a PlayStation tablet or has Sony already missed the boat?