PlayStation phone announced by August 31, 2010?

A fascinating rumor has surfaced via the Japanese press about Sony's interest in developing a PlayStation-branded device with mobile phone capabilities.

According to a wire service report that cited the Japanese Nikkei business daily:

"Sony plans to set up a project team as early as July to develop a new product that combines functions of its portable game player and Sony Ericsson's mobile phones, the Nikkei said."

Sony Ericsson later called the report "purely speculative" but the company clearly sees mobile phones as an important element of its overall electronics strategy. Besides the Sony Ericsson mobile phone venture, Sony's next generation of the PlayStation Portable, the Go, is switching to flash memory, a smaller form factor, and direct download of software, features which are more in line with what the iPhone and iPod Touch offer. Phone capabilities added to the PlayStation platform might make it very attractive to serious and casual gamers alike, especially considering the success of the iPhone/iPod Touch as a gaming platform.

Prediction: On or before August 31, 2010, Sony announces that it is working on a mobile phone/gaming device or is partnering with another company to produce such a device. Criteria for judgment include an announcement from Sony, Sony Ericsson, or a partner, or a news article that cites a company executive as its source. A release date does not need to be included, but the announcement or report must make clear that the planned device is an extension of the PlayStation brand. An unconfirmed rumor at next year's E3 expo (scheduled to take place in mid-June) will not suffice for judgment.