Electronics giant Sony has launched a digital camera with a whopping 4Gb of internal memory.

The Cyber-shot DSC-T2 digital camera comes in an 8-megapixel model, features 4Gb of internal memory and can store up to 40,000 VGA-quality photos or 1,000 8-megapixel pictures.

An album folder feature helps organise and access thousands of photos in the camera, with images viewed in chronological order and displayed in a calendar.

The camera also has a 'favourites' folder for instant retrieval of pictures, while the 'sharemark' folder can store those photos and videos deemed worthy for sharing beyond the camera onto the web.

The camera is pre-loaded with Sony PMB Portable software that automatically runs when the device is connected to a compatible PC via a USB cable. The software lets users publish photos and videos directly to popular web sharing sites, such as Crackle, Flickr, Photobucket, Shutterfly and YouTube.

A touch-panel LCD screen replaces small buttons with on-screen icons so users can touch the screen to select the subject they want to focus on or where they want to zoom.

A 'smile shutter' function automatically detects and captures a person smiling without the need to press the shutter. If there are several people in the frame, you can select the primary subject for the camera to watch by touching the screen. A sequence of up to six smiling shots can be taken without the need to manually press the shutter.

The Cyber-shot DSC-T2 digital camera will ship in December for about $350.