Rumors on the Sony PSP phone refuses to die out and the latest bit of wind fanning the flame is this quote from SCE co-chief operating officer Jim Ryan to India's Economic Times: "The PlayStation is a proven success and so is Sony Ericsson. Convergence with the two arms working together is definitely plausible." It's more likely that the device will be a handheld gaming system with a phone blended in and not vice-versa. Ryan told the Times "it could be a while before a commercial launch of such a device happens....", let's just hope that won't take to long for the official announcement.

You may recollect that Sony Ericsson filed for that PSP-type gaming phone patent in June last year and in August Sony Ericsson said they were looking at a PlayStation-branded phone (but not this one).

Related entry - Sony Ericsson PlayStation Phone Coming Soon

Source