The system, due later this year, "is so small that it is basically a non-factor for people who are conscious of space," said Jeff Goldstein, consumer audio group VP.

The 5.1-channel system is built around a 720p/1080i up-scaling single-disc DVD/CD player/receiver and powered subwoofer. They deliver 5x50 watts to the five satellite speakers and 2x100 watts to the subwoofer drivers.

The new system features Sony's proprietary Digital Media Port input, available for the first time this year in Sony mainstream audio products. The port connects to the company's first iPod-docking cradles and the first cradles designed to dock with Sony's Net Walkman headphone MP3 players. The port also connects to the company's first stereo-Bluetooth audio adapter, which streams music from Bluetooth-equipped cellphones and MP3 players, and to the company's first Wi-Fi adapter, which is a DLNA-certified device that streams music from a networked PC.

The system also features:

—touch-sensitive controls that illuminate and disappear on touch.

—BRAVIA Theatre Sync technology, which uses an HDMI connection to simplify the operation of a home theater system using select Sony BRAVIA televisions.

—Digital Cinema Auto Calibration (DCAC) to simplify multichannel surround sound setup with the use of an included microphone.

The iPod cradle enables a docked iPod to be controlled from the remote supplied with the receiver or audio system. The iPod menu appears on a connected TV screen which can then be controlled from the iPod.