Sony is currently working on a PSP-branded phone for the Christmas season of 2009, Japanese and Korean sources are claiming again.
The company is using the PSP as its model for the phone and intends to incorporate many of its key features into the new device.
Analysts speaking to Marketing Week also claimed that it would be "relatively easy" to convert as it already incorporates wi-fi.
The move would put Sony's relationship with Ericsson into jeopardy, but insiders are reporting that the relationship is already "frosty" at best. Probably because Ericsson bosses keep reading all these reports online about Sony making a PlayStation phone.
According to (yet another) insider, internal conversations have already confirmed that Sony would "never give its PlayStation branding" to the Sony Ericsson joint venture.
It's hardly confirmation, but it sounds more than just a rumour. Enough for us to consider not joining the iPhone cult, anyway.