It is still not clear whether a PlayStation phone is actually coming out, but recent rumors suggested that an Android device with PlayStation functionality might carry Sony Ericsson's Xperia brand "Gaming, including content, is a very interesting proposition", Nordberg added when asked about diversifying the company's lineup.
Smartphone titles are gaining momentum due to the smartphone platforms' popularity and the cheap price. Sony Ericsson cannot be missing that. It still has to negotiate rights with game publishers to get it done, but as Nordberg said, “the future might be brighter”. We certainly hope so.
source: Wall Street Journal via Engadget