A few hardware companies in that list of sponsors, I wonder if they'll focus on 3D, seeing as that's the core of their business...
I've noticed the five reports for duplication on this story - before posting it, I did type 'piss screen' into the 'check for duplicates' box on the first page, and nothing came up. Apologies. (also, I'm hoping this doesn't count as offensive language!)
Would Google allow that? Sony Ericsson has great history making gaming phones anyway, and Android Market could be as good as iPhone's App Store for discovering and buying games - this could be a match made in heaven.
Or they could make a Walkman Android phone instead, I guess.