Well, according to Max at SEMC blog, Sony Ericsson is planning to announce a new Android Powered Walkman phone in June.
The form factor will be similar to the Xperia X10 mini. It will sport a 2.6″ capacitivve TFT touchscreen display and a 5 megapixel camera. THe LED flash will be missing though. The new device also supports Style-UP covers. There's no news as of now whether the device will launch with Android 1.6 or 2.1 or even 2.2 for that matter. But one thing is confirmed that the device will boast a feature rich Walkman Player. Watch this space for more!
Note: The device in the above image is a standard Xperia X10 mini.
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