Nanoloop,
the synthesizer / sequencer for the Nintendo Game Boy, has reached
version 2.0 today. Nanoloop ships as a Game Boy game cartridge,
allowing you to sequence the game system's internal sounds. The biggest
new feature is digital audio out
capability — yes, you heard that right, using client software on your
computer you can digitally record audio from the game system to your
hard drive. The client will initially be Windows-only, but Mac/Linux
versions are planned. Lots of other upgrades, too, taking advantage of
the Game Boy Advance hardware platform, including MIDI sync in (though
with up to 10ms latency), loop swapping, easier data management and
backup, and more. I'm personally most excited about a live mode taking
advantage of the GBA's shoulder buttons.

Updated: Oliver Wittchow of nanoloop writes to clarify how that digital audio transfer works:
"The digital out is not real time (like SPDIF) but works at a speed of
32 bytes/s. Since only the nanoloop-internal data, not audio data, are
transferred (the data represented by fader positions and song
structure), transfering an 8-minutes song still takes only 3 minutes.
so this digital data transfer can not be used for live performances but
just for hard disk recording."

Compatibility: Requires Nintendo Game Boy Advance
Availability:
Out of stock, expected by end of the week
Cost:
EUR80 plus EUR5 shipping

Check out an artist using nanoloop version 1: Bubblyfish