Sony Corporation on Thursday said it is developing a Walkman with a video display, following the success of Apple Computer Inc.'s market-leading iPod line of digital media players.

"We are developing a product that handles images, but I cannot make any comment on specific plans," Sony senior vice-president Hiroshi Yoshioka told a news conference in Tokyo where the company was showcasing new models of the Walkman.

The company that created the personal media device market in the 1980s with its introduction of the Walkman audio cassette player has lost ground to Apple in recent years, which has captured more than half of the global digital media player market.

Yoshioka was appointed president of Sony's audio business unit in June.

Last month, Microsoft Corp. announced that it will offer its own personal media device in the United States this fall.

The Zune digital media player, which will let users wirelessly connect their devices to share audio, video and images, will launch on Nov. 14 with a 30 gigabyte model for about $250 US.

Apple's 30 GB iPod retails for $249 US or $299 Cdn. The company introduced a new 80 GB model in September, which sells for $349 US, or $399 in Canada.