We found pictures of the Playstation Phone on Engadget. No offense to Sony, but our first thought was, “ewww”. It still has a ways to go in the looks department but the specs are pretty damn impressive. It is most likely going to run on Gingerbread (Android 3.0) with 1GHz Qualcomm MSM8655 (a chip similar to the one found in the G2, but 200MHz faster), 512MB of RAM, 1GB of ROM. The touchpad is a pretty neat idea, we're thinking it's going to be used in place of a joystick.
This still is a prototype which means improvements are on their way so don't let first impressions (especially based on its look) be misguiding. The device is said to be headed for a 2010 release but 2011 will be a much more realistic guess.