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Sony Ericsson is developing a device that crosses the PlayStation Portable and a smart phone, and is powered by Google’s Android operating system, U.S.-based Web magazine Engadget reported Thursday.

Sony Ericsson in Japan said the company has not made any official announcement and can’t comment on product development based on speculation.

Use of the Android OS lends credibility to rumors of the PlayStation cell phone, following the announcement in May of a tieup between Sony and Google to make Google TVs as well as other mobile devices.

According to Engadget’s Web site, the phone uses a slider, much like Sony’s portable video game device PSP Go, and has a screen between 3.7 and 4.1 inches and possibly a 5-megapixel camera.

Instead of a QWERTY keyboard, video game controls and buttons are placed on the bottom of the slider.

The phone is likely to be powered by Google’s Android OS 3.0, and the Android Market application store will have a new video game-specific section as well, the Web site reports.

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