Howard Stringer, chairman, president and CEO of Sony Corporation comments on the partnership:

"The combination of Sony's industry-leading product design, engineering and development expertise with the flexibility and growth potential of Google's innovative, open-source Android platform will provide consumers with a world of new and exciting Internet user experiences. Through this alliance, Sony will deliver new levels of connectivity and Internet integration across our range of assets and product categories."

and consider

SIM card packs entire Android OS

19 Feb 10 21:00

Android could some day find its way onto basic flip phones, thanks to a SIM card that holds the operating system and everything needed to run it.

SK Telecom’s Android SIM includes a processor, applications, user data, 1 GB of memory and, of course, the OS itself. Pop the card into a dumbphone, and you’ll be running Android. Pricing and availability aren’t specified in Engadget’s report. SK Telecom has also created a separate SIM card that stores themes, apps, music and pictures, allowing vendors to pre-load the cards with all sorts of media.

This strikes me as the cell phone version of the classic operating system on a USB stick, letting you alternate between Windows and something lighter, like Ubuntu or Google Chrome OS. For cell phone users, a separate SIM card with Android might be a nice way to separate personal and business uses, or it could just be a better alternative if your flip phone’s default interface and features stink.

We’ve seen a few cool advancements in SIM cards over the last week, mostly coming out of this year’s Mobile World Congress. Last week, Sagem Orga announced a SIM card that doubles as a Wi-Fi hotspot, and a company called Beceem has developed a SIM card that seamlessly switches between WiMax and LTE, the two standards for 4G mobile broadband.

But SK Telecom’s creation might be the coolest of all, because it handles more than just voice and data. I don’t think I’d ever go back to a flip phone even with Android on board, but it’s a neat idea that could turn more people on to smartphones

http://www.myce.com/news/sim-card-packs-entire-android-os-26231/

and to see example:

theme chip's is just the start.

http://www.engadget.com/2010/02/18/sk-telecom-shoves-android-onto-a-sim-we-check-it-out/

you clearly don't know Cell phone the market that well.. android is taking over.. apple is loosing market share as sad as it is.. they are..

It's not killer for sony, because sony has experience in the phone market, and with PSP in the handheld gaming market.. if they manage to make a PSP2 with PSN on the go anywhere, with 4G, it would honestly sell like crack. It would be dangerous to nintendo's 3DS, if it's just a 3D update and not much else (which I find unlikely).

So who knows.

At what cost? It would be a nerdgasm, but it won't sell like hotcakes, and that is precisely what Sony needs.

And the Cell phone market don't overlaps the videogame market. If Sony wants to reach the hardcore market, their core users, with a casual oriented/corporate users machine (an android based phone which plays games) then I think they have clearly missed the target. It will annihilate the Playstation portable userbase.

Lost in translation much? PP will not have an android OS. Also, it would be foolish to be on the ps3, as android is dangerously insecure and shockingly useless on anything that isn't a smart phone. Those mobile os' are gimped to run apps only

prolly the new sony erricson phone

@kyness

I'm sure they will do something similar to what apple did with the Iphone, release the itouch which does most of what the iphone does, but without the phone features.

It will likely sell very well.. since as a phone it will expand to a larger market..

If they could pull this off they would make amazing tech with it.

Well this may indeed be true people if this is anything to go by:

I don't know if this is a good move for Sony.

If PSP2 runs Android, it means games will be easy as hell to port to other Android-based mobile devices. So the pressure will be to design games to run on both the PSP2 and about a billion different smartphone SKUs. HTC, Samsung, Motorola, et al. would effectively be manufacturing PSPs.

Sony could still drive PSP2 sales with their 1st party software... but part of me wonders if they wouldn't be better off selling games on the Android marketplace themselves, using the Android install base to rack up software sales while positioning the PSP2 as 'the gamer's Android device' — basically the Android equivalent of the iPod Touch.

There are some risks here. It could pay off big, or it could wipe out Sony's margins on both software and hardware and Google laughs while Sony helps them drive the Android platform.

another site:

though this one states "concrete"

Below you can find some concrete information about Google TV.