I just received this rumor from one of our new sources:
“The Sony Alpha 260 according reports will remain pretty much the same as the current Sony A230 but will increase MP to 14 or 16MP (CMOS) with HD video and is likely to have Live view but it’s believed it will carry ethier the same battery as the 230 or the upcomming NP-FV to keep size down.”
UPDATE: The camera should be released late 2010 early 2011.
Reminder: The rumor is from a new source. We will soon see if he has been right with that rumor. Until them we will classify his rumor with the “SR2″ value -> “unconfirmed rumor from new source”