Sony PlayStation Phone in the Works

NEW YORK, ( TheStreet) -- Sony ( SNE) Ericsson ( ERIC) looks to be making its move into mobile video game phones.

Sony and its mobile phone partner Ericsson have built the PlayStation phone, a touchscreen device with a slide-out gaming console, according to a report by Engadget.
Play Station Phone

The so-called PlayStation phone is expected to run on Google's ( GOOG) Android operating system and use Qualcomm's ( QCOM) 1-gigahertz processor, according to Engadget.

The PlayStation phone photographed by Engadget is a prototype, which raises the question of whether Sony Ericsson will be prepared to launch the game phone in time for the holidays. Missing the crucial spending season surge could be a major setback for a potential blockbuster phone.

--Written by Scott Moritz in New York.

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