"The PlayStation is a proven success and so is Sony Ericsson. Convergence with the two arms working together is definitely plausible," said SCE co-chief operating officer Jim Ryan, in an interview with the Economic Times.
Opposed to current Sony-Ericsson mobiles which have camera functionality superimposed on them, the new mobile will have to be a gaming machine with added phone functionality.
"What has been done is finding a match between a camera and a mobile phone, and that has been done wherein the mobile phone features are not reasonably inhibited and the camera is also a reasonably competitive product," said Ryan.
"It is hugely intellectually seductive to have a console-oriented phone."
Sony has recently struck a deal with BT in Europe to offer phone, text and video calls from the PlayStation Portable using VoIP technology, but no launch date has been announced yet.