The Internet is spinning with rumors that the creation of a Sony (NYSE: SNE) PlayStation phone is all but dead because of a fall-out between Sony and its mobile phone joint venture, Sony Ericsson (NSDQ: ERIC). Rumor has it that Sony Ericsson was all set to develop a PSP phone, as a follow-up to its popular Cyber-shot and Walkman handsets, but now Sony is refusing to let them use the brand, according to Mobile Today.

However, if there’s been any sort of disagreement, it seems Sony Ericsson officials are confident that it’s short-lived. In a briefing at CES, I spoke to Sven Totte, who is a director and head of category for global marketing, who told me that more branded experiences, just like Cyber-shot and Walkman, will be coming soon—specifically on the Google (NSDQ: GOOG) Android platform. He said the trick with using Android was that it needed to be clear it was a Sony Ericsson device, and that people have come to expect “a higher level of coolness,” like with their other Walkman and Cyber-shot phones. He said, only “some consumers will understand it’s an Android.” Last week, I emailed Totte to see if he would clarify whether that would include using the Sony PlayStation brand, but he did not get back to me with comment. Sony Ericsson committed to Android’s Open Handset Alliance in December, and said a phone would be ready as soon as this year.