Check out the video below and you will notice how similar to Swype the Sony Ericsson "gesture input" is right down to the blue trail that remains as you glide your finger from letter to letter. The typing system supports all of the languages on the international keyboard., Phones getting the update include the Xperia arc, Xperia PLAY, Xperia neo, Xperia mini, Xperia mini pro, Xperia pro, Xperia ray, Xperia active, Xperia neo V, Xperia arc S and the Sony Ericsson Live with Walkman.
Besides the "gesture input", the Android 2.3.4 upgrade includes Google Talk Video Chat functionality for models with a front-facing camera, updated Facebook inside Xperia features including enhanced like, share and discover functions, world's first 3D sweep panorama setting for camera, 16x video zoom, ability to connect USB peripherals to Sony Ericsson LiveDock, DLNA streaming over Wi-Fi and the ability to take a screenshot from anywhere on the phone. This really comes as no surprise since back in August, we were telling you to expect Sony Ericsson's 2011 Xperia line-up to receive Android 2.3.4 via an update.
source: SonyEricsson (1), (2)