Sony's long-rumored PlayStation Phone will reportedly launch in the spring of 2011, according to a report in Japan's Asahi Shimbun newspaper on Tuesday.

According to the paper,the device will be based on the Sony PSPgo and will retain the PSP's familiar gaming controls. It will combine the functions of a mobile phone and a handheld gaming device.

The PSPgo links to Sony's PlayStation Network service and relies on a Wi-Fi link for downloads of software, music and movies.

The new device is being developed by Sony Ericsson and will go on sale first in Europe and the U.S., according to the Asahi Shimbun.

Commenting on the report, Sony Corp. spokesman Atsuo Omagari said that it is "speculation."

Despite Sony's reluctunce to confirm the release plans for such a device, the development of the device has been reported by several media outlets including The Wall Street Journal. A Youtube video also appeared online last month showing a development handset from Sony Ericsson.

Next week's International Consumer Electronics Show in Las Vegas could be the perfect stage for Sony to announce the Playstation Phone.