The device is rumored to be scrapped after Microsoft announced Xbox Live integration for its mobile OS.
A Chinese blogger (well, who else do you expect) has leaked images of a Sony Ericsson mobile phone prototype that suggests the company were working on a Windows Phone 7 device. The model is reportedly scrapped after Microsoft announced (mandatory) Xbox Live integration with their operating system at Mobile World Congress.
The images come from estao.com and show the device from multiple views. The reasoning behind the ‘got scrapped’ rumor comes from the old version of the operating system running on the device. Of course, Sony would never support Xbox Live on any of their device as it is a direct competitor to the PSN and PS3. Especially more so now since after their announcement of the Playstation-certified Xperia Play. Looks like Sony will currently stay loyal to Android. Check out the images below.