Sony is rumored to introduce a new advanced Walkman at the CES 2009. According to SonyInsider Sony is supposed to reveal a new 16 and 32GB "drag and drop" Walkman with a 3 inch OLED touchscreen at the CES.

Update: Sony Walkman NWZ-X1000 with Wifi and touchscreen leaked

The new Walkman touch would also sport Wi-fi and new features that for instance connect artist information with videos on Youtube. Sony got a bit behind with their music players. Apple, iRiver, Archos and even Microsoft offer better music players that Sony right now. For a short while Sony made some points with ultra long battery life. But today touchscreen, Wi-fi, Internet features, and games are becoming more important. The Sony PSP is covering some of this but is too big for many to carry around as music and video player.
More CES 2009 Coverage.