It is a well known fact that megapixels are far from the defining factor in image quality, but big numbers sell devices and Sony Ericsson is hopping in the bandwagon.
Following LG's announcement of the first PAYG 5MP cameraphone, SE is said to be preparing 'C905' an eight megapixel shooter which will become part of ts Cybershot line. According to the Unofficial Sony Ericsson Blog, the full array of image enhancements (stabilization, BestPic, red-eye reduction, xenon flash and photoflash) for both photos and videos will be in there along with a new technology called 'Smart Contrast' (not defined, but the name kinda gives it away).
A-GPS makes an appearance too and brings the perk of geo-tagging while an accelerometer will flip shots automatically between portrait and landscape modes when the handset is turned.
The screen isn't overly large at 2.4 inches but a TV Out port will mean you can blow you 8MP snaps up on a far bigger screen if needs be (watch for noise corruption!). HSDPA, Bluetooth WiFi and USB data transfers are all worth mentioning as well and battery life is impressive quoted at 380 hours standby and nine hours talktime.
On the downside dimensions of 104 x 49 x 18mm and a hefty weight of 136g put the bulk of the C905 on a par with many smartphones so you're really going to need to be a camera nut.
Apparently Sony Ericsson will be announcing the C905 on 17 June so we should hear more soon. Expect rivals to soon follow suit...