Struggling mobile handset manufacturer Sony Ericsson’s global market share has reportedly dropped as low as 6 per cent, with efforts to cut expenses not being particularly evident in its first quarter losses of $384 million. Total losses for the year are predicted at €1 billion.

Ericsson has already stated it’s in a strong enough position to inject capital if required, and today, the Financial Times reported that Sony has also agreed to stump up if necessary. Around €500 million from each company could be provided. At the least, it’s expected the parent companies will act as guarantors on a loan enabling the partnership to survive.

The joint venture has been feeling the strain lately, after Sony Ericsson failed to address the smartphone market that exploded during 2008, and still has little on the table to make it competitive.

Today Sony Ericsson president Hideki Komiyama once again hinted at the possibility of a PlayStation branded phone, and many people within the industry can see the huge benefits of leveraging Sony’s gaming expertise, despite Sony previously ruling the possibility out.

Tough times could be causing both companies to reconsider that fascinating option.