Sony surprises by introducing the Mylo personal communicator.

The Sony Mylo is a wi-fi enabled portable entertainment device with full QWERTY keyboard. Mylo features a 2.4 inch screen, 802.11b Wi-fi, 1GB flash memory, built-in speaker, Sony memory stick slot and USB.

The Mylo is a chat machine. Besides the slide-out QWERTY keyboard it has IM, 90 contacts buddylist, built-in Skype and HTML browser (able to use Gmail). With Mylo you can manage 9 online identities.

Mylo is also a music player and video player supporting MP3, ATRAC and WMA (DRM) audio and MPEG-4 video.
Is Sony about to land a hit here with the always on generation? The Wi-Fi, music player, video player and chat combination could out leap Microsoft's Zune players.

The Sony mylo personal communicator will be available in September for about $350 in white (COM-1) or black (COM-2).
More details in this Sony press-release. Update: Sony Mylo product page is live. Sony also launched Rush Mylo, a promotion site for the Mylo aimed at college kids promoting Mylo Thumbternity. Sony will give away a Sony Mylo Personal Communicator, once the site launches. See also this video on YouTube fo the mylo.