In addition, the NX70V and NX60, which sell for $599 and $499 respectively, play MP3 audio files and video games.

"Sony looks forward to working closely with Macromedia and its more than 1.6 million creative Macromedia Flash designers and developers to revolutionize the handheld experience," said Toshinori Nakamura, general manager of the handheld arm of Sony (Quote, Company Info)

Sony and other handheld makers are working to enhance the functionality of the devices in hopes of spurring sales. The overall handheld market declined 9.3 percent last quarter compared to the previous year, according to IDC.

The Boston-based IT researcher pegs the decline on general economic weakness and a reluctance of enterprises to make product upgrades, predicting the market will remain flat the rest of 2002.

Sony competitor Palm has sought to buck the downward trend of enterprise spending by expanding the consumer handheld market, which still dominates handheld sales, with new entry-level offerings like the $99 Zire. The company is banking on its re-branded Tungsten line to spark enterprise sales.