Rumor: PlayStation phone's future in flux

Despite being an obvious consideration for Sony Ericsson, the nigh mythical "PlayStation phone" has spectacularly failed to materialize -- outside of some dodgy patent drawings. If a recent report by Marketing News is to be believed, the project's current status is up in the air, flitting between sharply dressed men sitting in a board room.

According to the publication's sources, the relationship between Sony and Sony Ericsson has become "frosty," with alleged insider conversations asserting that the gaming giant will "never give its PlayStation branding" to a cellular project. There's been some hesitance on this subject before, with Sony Ericsson's Peter Ahnegard stating, "Up until today we haven't felt we could launch a PlayStation phone because it wouldn't be recognized as a true continuation of that brand of products." Marketing News also notes that sources in Japan and Korea point to the PSP being "converted" into a phone.

Is the PlayStation-branded phone's future in flux? Is such a thing even in development? Will we have it in our mitts during Christmas 2009? This one's too confusing to call.