First appearance of this prototype can be seen in engadget. It previously rumored the PlayStation phone is based on Android 3.0 (Gingerbread), along with a custom Sony Marketplace which will allow you to purchase and download games designed for the new platform.
Some gadget blog reported that the device is sporting in a 1GHz Qualcomm CPU, 512MB of RAM, 1GB of ROM, and a screen in the range of 3.7 to 4.1 inches.
The handset has a long touchpad in the center which is apparently multitouch, and there's no Memory Stick slot, but there is support for microSD cards.
It is interesting to see new player enter the crowded gadget market. Could it survive well enough to win the era of branded smart phone and android tablet? We’ll see.
In the mean time however, Sony has not yet officially confirmed.