Updated: PSP Phone rumours: what you need to know

It's been rumoured for some time - Sony was blabbing on about a "seductive" PSP/Phone hybrid back in 2007 - but it's no longer a rumour: Sony has indeed locked a PSP Go and a smartphone in a dark room full of aphrodisiacs and Barry White CDs.

The result is the Sony PlayStation Phone, or PSP Phone, an Android-powered device that's half PlayStation and half phone.

Indeed, the CEO of Sony Ericsson mobile phones has responded to the PlayStation Phone rumours by saying that there is "no smoke without fire."

So what do we know about it?

The PSP Phone runs Android

The Sony PlayStation Phone OS will be Android, most likely the Android 3.0 release.

The PSP Phone specifications are pretty impressive

According to Engadget, the PlayStation phone specifications include a 1GHz Qualcomm CPU, a 5 megapixel camera, 512MB of RAM and a 3.7" or 4.1" display with WVGA resolution or better.

Rather than a QWERTY keyboard the PSP Phone slider reveals the familiar D-pad and buttons from the PSP Go together with a wide touch pad in the middle that supports multi-touch gestures. Unusually for a Sony device it's expandable via MicroSD cards rather than Sony's own Memory Sticks.

The PSP Phone images may be fake

Engadget is confident that the images it's published are the real thing - albeit images of a pre-production prototype - but Sony Europe is calling shenanigans.

The PSP Phone interface hasn't been leaked yet

Engadget's prototype is "still in prototyping mode", which means Sony hasn't yet applied its own skin to the Android operating system. It "is said to be rather buggy" too.

The PSP Phone release date probably won't be in 2010

A 2010 release date has been rumoured since we first heard that Sony might make a PlayStation phone, but given that we're already in October - and that Android 3.0 hasn't shipped yet - that's looking pretty unlikely. A 2011 release date is much more realistic. We'd have had it earlier if it weren't for a bad case of office politics, it seems.

UPDATE: It's looking likely that the PSP Phone might make an appearance at Mobile World Congress in February 2011.

PSP Phone games might be cheaper

The rise of the iPhone and Android app stores mean phone users are used to paying pennies for games. Will Sony slash the price of its portable games, or will it try and persude punters to keep paying thirty quid for blockbuster titles? As Screen Digest's Ed Barton told us in August, "the average sales price of iPhone and other mobile games is much lower… does Sony want [the PlayStation brand] to rush headlong into a development environment where the consumer expects games priced at 59p to £5.99?"

PSP Phone games will look like PSP and PSX games

Engadget reports that Sony PlayStation phone "games will be graphically in the range of PSX or PSP games, meaning true 3D gaming is heading to Android." Such games will be in a PSP Phone-specific bit of the Android Market, although it's possible that the games might be made available for other Android devices in the future.