Peter Dille, senior vice president of marketing at Sony Computer Entertainment America, has responded to rumours of a so-called PlayStation phone – following a reveal of pictures on Engadget this week.

Despite some confusion over a SCEE spokesperson apparently claiming the pictures were fake – followed by Sony subsequently backtracking to issuing the usual "don't comment on rumour" line – Engadget is sticking to its guns.

PlayStation Zeus?

The gadget site is claiming that the PlayStation phone is codenamed "Zeus" and will run Google's Android OS.

SCEA marketing chief Dille told CNN that the PSP as its stands cannot allow PSN to be an 'always-on' network, as it is Wi-Fi only.

"I don't think we fully realise that vision with a Wi-Fi device," he said. "If it's not connected [to a cell network] then it does sort of limit people."

Additionally, a Sony spokeswoman confirmed: "We have relationships with Google."

Dille went on to dismiss iPhone games as "time-killers", which PSP gamers weren't that interested in.

Stay tuned for responses from UK developers and analysts on the PlayStation phone rumours shortly.

Via CNN