According to the latest report from Japan the Sony Ericsson-developed phone might even go on sale first in the US and Europe, with Japan and other territories following at a later date.
The phone will be based on the PSPgo with slide-out PSPgo-style gaming controls, with a touch-sensitive tracking pad instead of analogue thumb nubs.
Sony Computer Entertainment and Sony Ericsson are still to comment on the latest reports from Japan.
The Sony Ericsson 'PSP phone' may also well be called the Sony Ericsson Xperia Play after numerous domain names containing that name have recently been purchased by the company.
All will be revealed later next month followed, no doubt, by a major PR offensive at Mobile World Congress in Barcelona in February.
Whatever the official name and final specification, the PlayStation Phone is likely to be based on Google's Android 3.0 platform and feature "custom Sony Marketplace which will allow you to purchase and download games designed for the new platform."
The Sony Ericsson phone is also looking likely to be based on a 1GHz Qualcomm CPU, with 512MB of RAM, 1GB of ROM, and a screen "in the range of 3.7 to 4.1 inches."
Commenting on possible confusion between Sony Ericsson mobile products and Sony PlayStation gaming products and brands, Sony boss Kaz Hirai also noted recently that: "We don't want gamers to be asking, what's the difference between that [a PS phone] and a PSP... we have to come up with a message that users will understand."
Hirai added: "It would have to be a product that keeps the PlayStation's strengths intact."
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