Well they could make an Android Smartphone, put in a locked bootloader (like the Motorola Milestone). Then they could make a program that runs natively on the device but not through Android (so they run side-by-side). This program enters the "Playstation" mode where you play games etc, and since it is not related to Android/Dalvik/java/VM/bullshti the games can be played at a great performance.

(lol)