Sony Ericsson introduced a  new phone on Thursday that allows consumers to connect to their PlayStation3  gaming consoles, part of its  Christmas line-up and its strongest sign yet of integration with parent Sony Corp.
 
The world's fifth-biggest handset maker, which has slid down the rankings as  the mid-market handset segment has been squeezed, said telecoms operators were  hungry for phones that could drive data usage without needing huge  subsidies.
 
"What they are looking for are chances to offer unlimited broadband data  tariffs while reducing customer  acquisition costs," Lennard Hoornik, Sony Ericsson's global head of  marketing, told Reuters.
 
Sony Ericsson said it would launch a virtual software applications store --  joining a host who have rushed to ape the phenomenal popularity of Apple's  AppStore -- and would announce details at next week's JavaOne Conference.
 
Money-losing Sony Ericsson is in need of new models to renew its offering  since the appeal of the years-old Sony-branded Cybershot cameraphones and Walkman music  phones has faded.
 
The Aino phone will allow users to manage media stored on their PlayStation3,  much like the PSP mobile console and helping position the video-gaming console  as a media hub, but will not allow them to play games or access high-definition  video.
 
Sony Ericsson has rapidly lost market share in recent quarters as demand for  so-called feature phones has  suffered during the recession. Market expansion has been seen at the high-end  smartphone and low-end emerging-markets extremes.
 
"At last there's a cooperation between a Sony product and a Sony Ericsson phone," said Ben Wood  of UK-based research firm CCS Insight. "Previously, it was just branding. We see  it as a statement of intent."
 
Sony Ericsson, a joint venture of Japanese electronics maker Sony and Swedish  telecoms gear maker Ericsson, is battling with deep losses and is expected to  need at least 100 million euros ($139 million) in extra funds in the next  year.
 
Sony Ericsson said the Aino, which will allow consumers to access media  content from their PlayStation gaming  machine on the move, would be available in the fourth quarter, along with  two other phones presented at a London event.
 
The Satio, previously announced at February's Mobile World Congress as the Idou, has a  12-megapixel high-resolution camera, while the Yari contains a Nintendo Wii-like gesture sensor for  gaming.
 
Satio will not go on sale until the fourth quarter, which could mean Sony  Ericsson would miss the chance to be first to market with a 12-megapixel camera  phone, said CCS's Wood.