The PlayStation Phone may have been spotted in Greece, reports Engadget. A video taken on the sly (above) shows a man using a touchscreen device with distinctly PSP-like curves. It's reportedly been named the Sony Ericsson Z1 and comes equipped with a 4-inch touch panel and Android 3.0 (i.e. "Gingerbread").

After its initial photographic leak, the PlayStation Phone has seen its share of denials and (almost) confirmations. Engadget defended its source as "most definitely real" after one Sony representative called it a fake. Later, Sony Ericsson CEO Bert Nordberg remarked, "There's a lot of smoke, and I tell you there must be a fire somewhere." While not a confirmation, he seemed to be coyly indicating that reports were on the right track. All of this is unconfirmed by Sony, of course, so consider it a rumor until we hear official word.