Rumours of third gen iPod touch deepen

There's a lot of gamers out there who believe the best option for jumping on board the App Store wagon isn't an iPhone, but an iPod touch and a separate mobile. Those opinions are likely to find purchase if rumours of the third generation iPod touch prove true.

Code sleuths had already dug a reference for a new model of the iPod's bigger brother out of the 3.0 firmware, and now Wired is citing sources close to Apple that it's readying an upgrade to the phoneless iPhone.

Primarily. this new model of iPod touch will boast a microphone and camera, which might not sound all that vital until you consider the use of VoIP applications. This combination would make for a very convinient home phone, and as wi-fi hotspots grow in popularity and frequency, the iPod touch would be well worth carrying about town.

This new model is expected, according to the unnamed source, in the next two to three months - just in time to give people pause for thought when it comes to buying a PSPgo, or a new iPod touch. Cunning.