Sony Ericsson boss on PSPhone: "There's a lot of smoke, there must be a fire somewhere"

Sony Ericsson CEO Bert Nordberg has seemingly all but confirmed a PSPhone is in the works.

Nordberg told the Wall Street Journal: "There's a lot of smoke, and I tell you there must be a fire somewhere.

"Sony has an extremely strong offering in the gaming market, and that's very interesting.

He continued: "Sony is of course a very strong brand, and why shouldn't we use that? Gaming, including content, is a very interesting proposition."

The WSJ claims the phone will actually come from the Xperia brand, run Android and that games will be available through a similar application.

A blowout is promised at the Mobile World Congress in February in Barcelona.

Rumours of a PSPhone emerged last month from Engadget with specs, info and pictures. It was claimed the info and pictures were fake by Sony before the statement was retracted.

The phone is meant to run from PSP1 tech, according to sources close to VG247, with it codenamed Zeus.