Sony Insider (linked above) is reporting that trusted inside sources have told them that Sony is to "debut a new 16 and 32GB drag and drop Walkman during CES 2009."
They say it will feature a WQVGA OLED touchsreen display, Wi-Fi (WPA and WEP support included), YouTube access features and a fully functional Web browser.
To quote: Additionally, this new Walkman will be able to subscribe to audio podcast and Crackle video feeds; this means automatic download of new updates, the ability to delete old feed content, all over Wi-Fi. Audio codec support includes MP3, WMA, AAC, PCM, while video codec support is AVC (h.264), MPEG-4 and WMV.
There will be built-in search capabilities that can be used to learn more about your favorite artist, and users will be able to purchase full CD's of their favorite artists through the Walkman at Amazon. A powerful S-Master digital amplifier is built into this device as well as digital noise canceling to ensure optimal sound.
On top of all of these impressive features, Sony has also included a FM radio to truly differentiate this product amongst the competition.
Also, while the product shots above do not show hardware buttons for music control (previous track, play/pause, next track and volume), we believe this device will have dedicated hardware buttons for this functionality. More PlayStation 3 News...