News was leaked from Apple today that a new iPod is about to hit shelves for the Summer. It isn’t very far-fetched, since there are several portable video players on the market now, including Pocket Media Assitant. It’s already sort of possible to play videos on the iPod Photo, though there is no sound and you manually move the frames with the scrollwheel. Also included in this new little gem is wireless connectivity using 802.11G to sync your music without cables.
Since it will have a fast processor and video capabilities, there is some speculation that with a controller accessory you will even be able to play real games on the thing with a Gameboy or other emulator. Software updates are in the works as well, such as the ability to edit playlists and modify tags on the fly. This means there may even be a mini-keyboard accessory like the ones available for cellular phones and PDAs.

There may even be cellular or wireless vonage capability, since there appears to be a number pad on the screen.
Look for more news on this as it develops.
UPDATE: The iPod Lounge story has been taken down, probably due to Apple’s strict punishment policy for leakers. Hopefully more to follow.