Sony makes great mobile phones via joint venture with Ericsson, so there wasn’t a big surprise that Japan based Commpany is going to create a perfect phone gaming platform.
First sign of that device was a patent filing, that showed an interacton of mobile and Playstation Portable.
Rotating screen and controls similar to PSP are the things that allow to comfortable playing.

Images of Playstation Phone - concepts and specutation.

Sony, is going to launch new phone based on Playstation Portable device.
This mobile is rumored to be called PSPhone, PSP Phone or Playstation Phone.
Sony is developing PSPhone alone, without Ericsson.
Playstation Phone will be based on gaming platform, extended with cell functions like GSM, HSDPA and HSUPA.
This thechnologies allow to communication via cingular network and Internet.