Sony announced its new Cyber-shot DSC-N1 digital camera today. It’s an 8 megapixel mode with a large touch screen LCD. But you ain’t heard nothing yet.

Sony is taking advantage of that beautiful LCD screen by adding in photo album capabilities. The camera will featured 26 MB of internal memory where it will store up to 500 of your photos in 640×480 resolution for photo album viewing. The DSC-N1 will still feature a slot for your Memory Stick PRO Duo so you can cram in gigs of memory.

Everytime you take a picture using this super-thin camera, it stores one image in high resolution and one in 640 x 480 VGA for the photo album. Keep around that compact version for use in your own slideshows even after you remove the high resolution version to free up space! Take your favorite pictures wherever you go.

The Cyber-shot DSC-N1 digital camera will be available in mid-November for about $500.