UPDATE: See the New PlayStation Phone Play Games

We've seen a few snapshots and a handful of blurry videos, but the latest leaked footage of the hyped Sony Ericsson Xperia PlayStation phone demonstrates the playing of Resident Evil 2 and Rage Racer.

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On the edge of your seat? Don't worry- looks like the hype will deliver. Kaz Hirai, President and CEO of Sony Computer Entertainment, made the following recent announcement:

"Strategy encompasses driving the development of a variety of new strategic products and services including tablets currently in development as well as smartphones, all the while of course integrating the knowhow and the assets that we've accumulated from our PlaySation business."

• Previously, PlayStation x Cell Phone (Yes, Please).