That device is currently undergoing a funding process in the country but looks set to reach its goal in time to ship next year, but it will be locked to Japan only so Sony might be able to capitalise with a wider, global release.
People familiar to the matter told Bloomberg that, like the FES Watch, Sony's device will be less smart and more watch. It will be aimed at the fashion rather than technology market so will not tread on the toes of the company's own SmartWatch line.
It is believed to be part of the business creation division recently created by CEO Kaz Hirai to fast track exciting and different product lines.
Sony is no stranger to using e-paper for products as its SmartBand Talk, first shown in September, also has a similar display in order to lengthen battery life. Pebble is perhaps the best known smartwatch manufacturer to use the technology for its watch displays.