Nordberg told the Wall Street Journal: “There’s a lot of smoke, and I tell you there must be a fire somewhere.

“Sony has an extremely strong offering in the gaming market, and that’s very interesting."

He added: “Sony is of course a very strong brand, and why shouldn’t we use that? Gaming, including content, is a very interesting proposition.”

The Wall Street Journal furthers that the phone will actually belong to Sony Ericsson's Xperia brand, will run Android and that games will be available through a similar application. The device is due to be revealed at the Mobile World Congress in Barcelona next February.

At first we didn't understand the dual strategy of having a "PlayStation Phone" and the upcoming PSP2, but we finally get it. This isn't a "PlayStation Phone" at all. It's a Sony Ericsson with an emphasis on gaming and the PlayStation button layout. It finally makes sense to us.