This is the Sega Vision. It will be able to play MP3s, Video Files, take pictures and even has a TV and radio tuner. Currently only available overseas in Sega UFO Catchers (Thats the crane-game to us here in America) as one of the prizes.

It was said to play flash games but at the moment does not support any gaming media because they didn't want people to think they were trying to compete with the DS and PSP and they would like to have a higher quality of games than just flash when they do give it a gaming function in future models. (Note: You don't need that antenna sticking out unless you use the TV function)

Now back too my tear-eyed oooh-ing and ahhhh-ing!!! Seriously, I know this may just seem like another multimedia device but come on, its Sega. If this thing does go mainstream they will surely keep making games for it and possibly even a new Sonic game especially made for the device.

This is so much more than just another mp3 and video player. This marks the first attempt by Sega to make any form of hardware since the Dreamcast.

Even though its not meant to be soley a gaming device this is a huge step for Sega and if it proves successful for them, successful enough to stay around for awhile, this is the first step to Sega making another console someday. Like they said in an interview with EGM all those years ago when asked if we'd ever get another Sega system...."Never say Never Again."

http://www.seganerds.com/2009/02/04/atei-sega-vision-hands-on/