Sony is working on a tablet that will be PlayStation Certified, just like Sony Ericsson's Xperia Play smartphone. The talented engineering team working on the device spans employees from Sony's VAIO, Reader, PlayStation, and Ericsson product groups. The team is led by the VAIO group but will probably not launch under said branding.
Currently codenamed S1, the device will have a 9.4-inch capacitive touch screen (1280 x 800 resolution), run Android 3.0, and will be powered by a Tegra 2 processor, according to "two highly trusted and independent sources" cited by Engadget. It is focused on Qriocity, the company's music, game, ebook, and video on-demand service that recently launched in Europe. The gaming tablet will come preloaded with Sony PS One games, and a Bravia Media Remote. It also features front- and rear-facing cameras as well as a USB-A port. The physical buttons include volume, on/off, and possibly a Q for Qriocity. There's even an IR port built-in allowing you to control other devices.
The tablet will have a "wrap" design that mimics an open paperback stuffed into a back pocket, or a magazine folded backward upon itself such that only a single page is visible. In terms of functionality, this will supposedly give the tablet's display enough of an angle to comfortably touch-type when placed on a table, make one-handed operation a bit less taxing on the wrist, and to reduce the torque that makes 10-inch tablets uncomfortable to hold one-handed for an extended period of time.
The target price for the WiFi-only version of the S1 is $600 with a planned September 2011 ship date. Remember, this rumor is still a very early one, so anything can change. The product may even be canned, but hopefully that won't happen.