Sony is busy working on a PlayStation-branded phone, according to company insiders.

Marketing Week reports that the phone will incorporate elements of the PlayStation Portable (PSP) and could hit the shelves in time for Christmas 2009.

MW quotes ‘sources in Japan and Korea’ which say Sony is working on converting the current PSP model into a phone.

Insiders told the magazine that the future of Sony Ericcsson is in the balance – with internal conversations ‘confirming’ that Sony would “never give its PlayStation branding” to the Sony Ericsson joint venture.

Another industry source said that the relationship between Sony and Sony Ericsson had become “frosty” – and added that Sony has learned from its “strategic error” of giving its Walkman branding to Sony Ericsson.

Advertisement

Sony Ericsson launched its new F305 gaming phone last week, which included a 'Wii-style' control mechanic.

A spokesman from Sony Ericsson says the handset maker “never comments” on future product announcements.

PlayStation offered MCV a 'no comment' when contacted for response.