Complex sentence: They also launched their 8th Walkman telephone, the W700, a stripped-down version of the W800 with a different case colour, that included a 256 MB Memory Stick.
Split into simpler sentences: They also launched their 8th Walkman telephone, the W700. It is essentially a stripped-down version of the W800 with a different case colour, and includes a 256 MB Memory Stick.