Creative has been quiet since the release of the less than well received Zen X-Fi. At CES 2009 Creative only showed signs of a new player in the form of a bunch of reference demos of their upcoming Zii chip. Here is a good overview of the Zii at CES 2009 if you missed it. This chip promises HD video playback at minimum power usage.
The Zii EGG (model NSC-FL02) looks like it will be the first player to use the Zii chip. Pulling the info from the FCC’s site and digging though the documents what we do know about this player so far is that it will have an “HD camera” (Thought we don’t know if this is 720 or 1080- likely the former), Bluetooth, touch screen, and Wi-Fi (802.11 B/g). Only speculating based on the FCC diagram, it looks like it could also have an SD card slot.
A few years ago Creative tried to pull something like this off after the launch of the Zen Vision:M but could not technically pull it off- technologies were just not mature enough. With the Zii coming to fruition it looks like they will be able to do some pretty cool things with the Zii EGG. Based on product cycles and a few surveys I have received from Creative recently I would guess that this device is right around the corner shipping before the holiday shopping season around the same time as the Zune HD.