We've been hearing speculation regarding a PlayStation phone on and off for the best part of two years, and now this gossip has resurfaced, apparently following in the iPhone's footsteps with a new gaming handset.

According to Japan's Nikkei daily (thanks Reuters) of a hybrid phone will begin in earnest next month, with a team already in place.

A 'cellphone-game gear hybrid' is on the cards, Sony's team charged to "develop a new product that combines functions of its portable game player and Sony Ericsson's mobile phones." A Phone of sorts?

We'll see if we can find out any more on this.

By Luke Guttridge