Politics, not technology, did for the PSP phone

No PlayStation phone then? There's a surprise.
It's not hard to see through Sony Ericsson's line about the technical specs not being high enough. It's face-saving spin designed to distract attention from Sony's basic problem with Sony Ericsson's entire existence.
There's been no shortage of signs that Sony is unhappy with its relationship with Sony Ericsson, and we expect the PSP phone has been denied due to Sony's fear of repeating the alleged "strategic mistake" it made when it gave up the Walkman brand for their line of phones.
There have been long-standing rumours that Sony wants to buy out Sony Ericsson and enter the phone business on its own terms. Giving up the cornerstone PlayStation brand to someone you might want to buy isn't something you do ahead of the deal.
A PlayStation phone makes a lot of sense and it's not hard to see why Sony would very much like to make one - but it can't until the politics are sorted out.
And who knows how long that's going to take?