With nothing to back their claims but a set of photos, Engadget have confirmed that the much rumored PSP mobile phone is being actively developed by Sony Ericson and is scheduled for release "soon".
According to Engadget, the new phone will have Android OS version 3.0 (codenamed Gingerbread) running on a "1GHz Qualcomm MSM8655 (a chip similar to the one found in the G2, but 200MHz faster), 512MB of RAM, 1GB of ROM, and the screen is in the range of 3.7 to 4.1 inches."
The phone will also come with a custom Sony Marketplace and will use standard MicroSD cards instead of Sony's proprietary memory sticks.
The photos unearthed by Engadget are available in the screens tab, but keep in mind that - according to Engadget - the phone is still a prototype and therefore it doesn't sport its custom PSP skin.