A few days ago, images of an early PlayStation Phone prototype hit the Internet. Sony hasn’t necessarily denied its existence either, with some thinly-veiled remarks in regards to the matter. While it shouldn’t be a surprise that this thing exists at all, it does come as a surprise that it’s taken this long for Sony to create a PlayStation Phone in the first place.
Based on the information out there, it looks like the phone is built off of the PSP Go body. It adds a cell phone to the body and removes the analog nub. The articles I linked to above also mention that the phone is built off of PSP 1 tech and that Sony wants to offer mobile gamers a deeper gameplay experience. Also mentioned on the Weekend Confirmed podcast was that this phone supposedly runs on Android 3.0.
While I think Sony has no choice but to at least give the cellphone gaming thing a shot, my gut says they might already be too late.
In Third Person 