While you may have given Sony's hard-to-categorize mylo little chance at surviving in the market, a recent report seems to show that sales were "exactly as Sony expected," which possibly means that there's more where that came from. Although surveyed retailers expressed mixed results in regard to sales, Sony "considers the mylo the forerunner to a new category of devices that cater to kids who want to replicate their PC online experience in a portable," and reportedly mentioned that the "next-generation model would include new partners and expanded capability." Now, we're not sure if WWAN or WiMAX connectivity could be headed to the not-yet-confirmed mylo 2, but it's pretty safe to assume that competition in the converged device market will have heated up quite intensely for the second iteration.

[Thanks, Ryan]