The Xperia Play phone will have a large touch screen and a slide out control panel much like the Sony PlayStation Portable console.
The phone will run on Google’s Android platform – the first time Sony has developed a device that allows its PlayStation games to play on non-Sony hardware.
The 8GB phone will come pre-loaded with seven PlayStation games and users will have access to a catalogue of modified PlayStation games. It can be upgraded to 32GB.
Sony Ericsson says the device will offer a “Console-like gaming experience with superb stereo sound”.
The handset maker is running a Facebook campaign called “The First 10” offering fans the chance to win one of the first Xperia Play phones.
The device was unveiled by Sony Ericsson chief executive Bert Nordberg ahead of the Mobile World Congress in Barcelona.
It will launch in April.
Last week, social handset maker INQ revealed its long rumored Facebook phone.