Update: many of you reported that Sony claimed this product is a fake. Try to remember the last time Sony said “yes, it’s true” to rumors about their new products. The answer is “never”. It’s their job to say that the product does not exist. It’s engadget’s job to reveal stuff. Who do you trust? The site who revealed the iPhone4, or the Sony guys whose job is to lie and control information?
The famous site engadget.com got their hands on a prototype of the upcoming PSP Phone, and confirmed it is real. Judging by the pictures, they got access to a debug version of the phone, but the final product could be released before the end of the year (although 2011 sounds more likely).
The device is apparently much more powerful than the PSP, and will most likely ship with Android 3.0. Will it be compatible with PSP Games? There’s a high chance Sony will try to leverage the PSN with this phone too. Engadget mention a “Sony Marketplace”, this might be a dedicated version of the PSN…