In March, there were reports that Sony is working on a new lineup of handsets that would be capable of playing and downloading PlayStation games.

Now, Engadget claims to have learnt via a trusted source that Sony is prepping PSP Go like smartphone. This smartphone will bring new gaming ecosystem and will possibly run Google's Android 3.0 Gingerbread operating system. This device is rumored to be launched around October and, if rumors stand true, would be available globally by year end.

According to reports, Sony's PSP Go like smartphone would be a landscape slider - just like Motorola Milestone. However, instead of a QWERTY keypad, Sony will use a gaming D-pad and instead of a joystick, the phone will have a long touchpad - sounds weird to us! The shoulder buttons for gaming will also exist just like in PSP Go. Internally, it will have 1GHz Snapdragon microprocessor and of course a good amount of RAM would be added too.

The screen size of this gaming phone will be between 3.7-inch and 4.1-inches with at least WVGA resolution. Sony will put Google's Android 3.0 Gingerbread operating system on it along with PlayStation's own gaming eco system. Of course, Sony will put skin interface over Android. We won't be surprised to see PlayStation Plus there. Legacy games like God of War, Call of Duty, and LittleBigPlanet for PSX and PSP platforms would be made available on this device. Considering the current game company buying spree that Google is on, we can expect some Google games for the device too.