The W8 Walkman runs Android 2.1 with Sony Ericsson's custom Timescape UI so it should be able to run most games and applications. Virtually indistinguishable from the Xperia X8, both offer Wi-Fi, GPS, and Bluetooth support as well. I might expect apps centered around music and media playback, but the Sony Ericsson blog mentions new or exciting.
Initially, the W8 Walkman phone will be offered in Asia-Pacific markets in three color options: Azure Blue, Metallic Red, and Iconic Orange. As of this time there are no indications that we'll see this phone at a U.S. carrier.