Just as quickly as Sony Computer Entertainment co-COO Jim Ryan reignited rumors of a PlayStation Phone has Sony come forward with a denial (via CVG). "Jim Ryan was in fact misquoted by the Economic Times of India about this issue," according to a company spokesperson. "We do have talks with other arms of the Sony family about various topics but I can confirm we are not currently working together on the creation of a PlayStation Phone."
The original (mis)quote had Ryan quoted as saying, "The PlayStation is a proven success and so is Sony Ericsson. Convergence with the two arms working together is definitely plausible." How Ryan was misquoted or mistranslated is unclear.