Rumours of the handset emerged in June 2007, after Japanese employees of Sony Ericsson filled a patent application with the US Patent & Trademark Office for a mobile phone with video game features. However, both companies have always denied they were planning to launch the handset.
Sony Ericsson was planning on developing the phone, which would follow in the footsteps of its Cyber-shot- and Walkman-branded handsets. However, it's reported that executives at Sony told Sony Ericsson that it would only license the brand if Sony makes handsets independently.
Sony Ericsson is also claiming Sony will only allow the PlayStation brand to be used on a top-end device.
"In the past, we have been keen that our product proposition lives up to brand promise, and we feel at the moment the technical specs are not high enough to put such a prestigious brand on a phone," a Sony Ericsson spokesman told Mobile Today.
See also: Smartphones fail 15-minute set-up test