This video was released yesterday and shows a demo of the Playstation Phone which is apparently codenamed "Zeus Z1" and is powered by Google's Android. The model when it goes on sale is the Sony Ericsson Xperia Z1. From the video, it's clear that the phone has a camera, a slide-out control panel, a touch-sensitive screen, and a portrait/landscape viewing mode. A control pad, four buttons, and shoulder-trigger buttons are also built into the phone along with a "Playstation" button which alludes to PSP gaming. So, is this basically a PSP-GO with phone capabilities? I think so.
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