The device has multiple inputs, including the Android buttons, gamepad triggers on the side, and a gamepad on the face after being opened. The rounded touchpads may double as analog sticks, but games would have to be made with that control input in mind. The D-pad also works natively with the Android OS. The device itself is said to be a bit unbalanced, but generally comfortable to hold and better built than the PSP Go.
The PlayStation Pocket, a game management app, was included but had no games to manage. For testing purposes, Engadget installed emulators for the PlayStation and Gameboy Advance. The games themselves ran well, but since they were run from emulators, we're still in the dark regarding the types of games Sony plans to offer.
Previously reported hardware specs seem fairly accurate, including the clock speed and included RAM. The preview claims it's a decent phone and only requires occasional rebooting. The device is expected to be officially unveiled at the Mobile World Congress in a few weeks, but Sony may hint at it during tonight's presentation.
Like mentioned in the article, it sounds like the primary draw here is going to be original Playstation titles. Probably modeled after the Playstation Originals digital delivery service they had for the PSP toward the end.
If the PSP has shown us anything, though, it's that things fail without proper backing from the parent company. I wonder if this will have it.