It's a fake picture, but even if it was real I don't think it would be really succesful. For starters it looks massive as a phone. Secondly, Sony would be up for some serious battle. Even iPhone games are somewhat good, but the holy war begins when Windows Phone 7 devices start showing up. Why? Because of Xbox Live integration, XNA for developers, and the great integration with Microsoft's other gaming platforms and support for developers. For example porting existing indie games made with XNA or C# can be really simple job that may require only changing the controls a little bit.
If a gamer is looking for a new phone, he or she is definitely going to look at WP7 phones as it integrates perfectly with their XBOX360 and in future with Windows games (as you may know, Microsoft is rolling out their games marketplace for Windows similar to Steam). That is a huge selling point, and Microsoft would have a long headstart to PlayStation Phone since Windows Phone 7 devices are starting to come out now.
Also as a game developer I must say developing for PlayStation and PSP is a major pain in the ass and many developers share the same opinion. XNA, Windows, XBOX360 and Windows Mobiles on the other hand are lovely to develop for.