If you’re looking for a lower-cost Android 2.3 smartphone, the midrange Xperia Neo just might be what you’re looking for. It’s rocking a 3.7″ 854×480 display with a single core 1GHz Snapdragon CPU. The camera on the back shoots at 8MP, and the front-facing camera can do 2MP shots. It’s also inheriting the BRAVIA engine from its higher-end brother, the Xperia Arc, which provides improved screen fidelity.

We got a chance to go hands-on with the Neo at Mobile World Congress. The Neo pretty much packs the same hardware as the Xperia Play, with a smaller screen, less beefy CPU, and without the gaming controls. It has the same Exmor engine for it’s backlit image processor as the Xperia Arc and the same Bravia engine that is improving the display quality.