The Sony’s Zeus Z1 Playstation phone is turning heads today.

[youtube=http://www.youtube.com/watch?v=O6cxaVRs60w&w=610&h=375]

The interesting thing here is that “Playstation” is just an app (see below).  That means that, should Sony decide, it may be able to run on other high end Android devices turning the millions of Android phones sold every week into Playstation compatible devices.  Games will likely be delivered through Sony’s app in a similar way as the PSPGo.

More likely however, Sony will keep its gaming franchise to itself on its own phones (hackers notwithstanding). So in essence,  Sony’s will be yet another Android App Store, this one for games running on the platform within a platform.

We’re already in the middle of the Holiday shopping period and this Android 2.3 Gingerbread running phone won’t be released until Google announces the OS.  Sony (GOOG) is losing out big if it misses Christmas.

[youtube=http://www.youtube.com/watch?v=pafJvpOv7Qw&w=610&h=375]