A pretty enormous announcement from Sony this week came in the form of the "NW-HD3," the company's first actual MP3-supporting Network Walkman.*

*Note: Sony had previously offered MP3-compatible devices through the Aiwa brand, but that's another story

Product Name 
Network Walkman NW-HD3

Product Image(s) 
[1]

Product Code
NW-HD3

Vendor
Sony

Release Date
December 10th, 2004

Price
About 42,000 yen

Overview
To put it simply, the NW-HD3 is the exact same thing as Sony's NW-HD2, but with the addition of the all-important MP3 playback functionality. It has the same form factor, the same LCD, and the same 20GB capacity. In fact, I'm willing to believe this is o­nly a firmware/software update to the NW-HD2, as Sony is also offering an upgrade service to existing HD2 owners.
Back to the HD3, it will be available in four body colors: red, blue, black, and silver. Although the device still supports Sony's own ATRAC3 and ATRAC3plus formats, I suspect most won't be interested in either format, as the included "SonicStage" software puts some limitations o­n said files. Another added capability of the HD3 is the ability to charge by USB. Speaking of USB, this is o­ne area where the HD3 falls short; it is still not recognized as a USB Mass Storage device by Windows, meaning you'll need to use included drivers and/or software to get it operational.


Reasoning
We've heard great things about the HD2's small size -- but o­ne of the chief obstacles to its acceptance has been the lack of MP3 support. Now that this support is present, you've got to wonder what will happen to the market in the next few months. Will Sony actually offer some competition Apple's way? Will Sony introduce a similar player with a color display and higher capacity? Will Sony decide to use their own production capabilities to bring the price of the player below that of the iPod?
Frankly, the introduction of a hard drive-based Sony MP3 player brings more questions to the table than it has answered. This is why it's our Product of the Week; we here at TechJapan feel that the HD3 represents a turning point for Sony, and perhaps through the influence of Sony, the portable audio player market in general.

Official Product Site 
http://www.walkman.sony.co.jp/hdd_nwwm/ [2]

Related TechJapan Coverage
MP3 support and USB charging for new Sony 20GB HDD Walkman [3] (November 30th, 2004)