It seems that we’re getting new photos of the upcoming and formerly top-secret PlayStation Phone, or PSP Phone, or its new name: Xpertia Play.

But now we have a video of the gizmo, showing its Android operating system and playing some games as well. However, the games are PSOne games which are played using ROM Buddy PS — don’t expect that, or any ROM, to be on the official phone.

Over the past few weeks (or is it months?), Sony has been working on a PlayStation phone, or PSP Phone, in great secrecy — not really, there’s tons of leaked photos of the thing, and now, a video.

The PSP Phone, or PlayStation Phone, appears like any other touchscreen-based Android smartphone, but it slides open to reveal a PSP Go-like controller. The video doesn’t show any games played, and we’re not sure whether the games will be PSP games or Android games. We’re kinda hoping for both.

This rumor just won’t die: Reuters is reporting through Nikkei that Sony is considering developing a cellphone-game hybrid in order to compete with Apple’s highly successful iPod Touch and iPhone.

In fact, the agency notes that Sony plans to set up a project team as early as next month to work on the device. This team would include members from Sony and Sony Ericsson, the company’s mobile phone sister company.

As expected, Sony has denied commenting on the report. One can only expect an awesome PSP phone to come out of the lab. Hope it’s as awesome in person as it is on paper.