The rumored new iPod touch is supposed to feature a camera that allows users to take photos and record video like on the iPhone 3GS. The rumored new iPod is seen to be released in September.

Last week we reported that the first iPod touch 3G cases appeared with holes for a camera. More cases are surfacing all with different hole designs, which of course means case designers do not know the final design of the new iPod touch yet.

TechCrunch supports the new iPod touch Video camera feature with a report saying that Apple has ordered a massive amount of camera modules.

It does not take much fantasy to imagine that Apple is going to offer a camera in the next generation iPod. This is of course bad news for Flip and other low-cost video cameras.