Sony Ericsson on PlayStation Phone: There’s no smoke without fire

Sony’s mobile arm Sony Ericsson has all but confirmed the existence of the fabled PlayStation Phone.

Rumours, speculation, and photo leaks suggest Sony Ericsson is working on an Android phone, with a separate marketplace for high quality games made and curated by Sony’s PlayStation division.

PSP and PlayStation 3 maker SCE did their own bit of rumour bating earlier this month. "When the timing is right we can probably announce the new product that we have," Sony admitted.

And today, the CEO of Sony Ericsson has told the Wall Street Journal, "there's a lot of smoke, and I tell you there must be a fire somewhere."

The WSJ asked around, and found from other sources that the device won’t be PlayStation branded as expected, but rather part of Sony Ericsson's range of Xperia smartphones. It will run Android, though.

It seems like the device will get its official debut at the Mobile World Congress, in Barcelona in February.