This is the new iPod Touch, announced at Apple's press conference today. It's got the iPhone 5's screen and the A5 processor, which makes it about as fast as the iPhone 4S.
The new iPod Touch is out in October and retails in Australia for $329 for 32GB, or $439 for 64GB.
The iPod Touch is "the world's most popular music player... but a lot of people don't realise that it's also the world's most popular video game player as well," Apple's Greg Joswiak said while revealing the new device.
Joswiak then showed off Clumsy Ninja, a rudimentary game that resembled Nintendogs or a tamagotchi. He prodded and poked at the on-screen ninja, who could react to the environment and "learn". It's due out around Christmas.