Rumor has it that Sony wants in on some of the action that iPhone is getting.

According to Japan's Nikkei business daily (via Reuters), the company will start development on a "cellphone-game gear hybrid" next month and has a team ready to start work on it.

The team's purpose is to "develop a new product that combines functions of its portable game player and Sony Ericsson's mobile phones."

Sony gaming phone rumors have been around for a while, so who knows. Maybe it's true this time.

Thanks, D'toid.