@IsaacDFP

That's exactly what I was thinking... the PlayStation program is activated within Android but it does not rely on the Android OS, it functions by itself, natively, so that it can access the processor's potential. It is also a closed proprietary system and can access the PSN.
Then it could really earn the honorable title as "The PlayStation Phone".

If this thing attracts potential PSP2 buyers, it will not hurt SONY in any way because it is still making a profit (probably a larger one). And I'd think this beast would steal alot of customers from iOS and other Android devices, so that SONY would decide to make the device sustainable. So your worries are ill-based.

But instead we get a Sony Ericsson Xperia Xplay (uurgh!).

@Cue
lol, that's hilarious, nice catch (sounds like a hipop rhyme)