Sony refused to allow Sony Ericsson the use of its Playstation brand for a possible Playstation Portable phone during a pitch to the company's board late last year, Mobile Today reports.
Quoting sources close to the matter, the site says that the decision in December prompted a fallout between Sony and the mobile phone joint venture.
Sony executives told Ericsson that they would only licence the Playstation brand if Sony were to make the handset independently. The mobile phone company already uses the Bravia, Walkman and Cyber-shot brand on its phones.
Reached for comment a Sony Ericsson spokeswoman wouldn't comment on the rumour but did say: "In the past, we have been keen that our product proposition lives up to brand promise, and we feel at the moment the technical specs are not high enough to put such a prestigious brand on a phone."