It looks like Sirius may be realizing that it has some serious problems with the viability of satellite radio. The company’s latest strategy features a new device, the Sirius Stiletto Live portable Receiver SL100PK1, that can receive audio via WiFi.

That’s right – the latest device from Sirius works over the Internet using WiFi, expanding coverage to anywhere the Internet is available, and making satellite distribution redundant for some users.

The Stilleto is another sign, like the Microsoft Zune, of convergence on an audio platform based on wireless Internet distribution.

The Device will have a 2GB storage to store Sirius content, podcasts and other MP3s that can be uploaded onto the Stiletto with your computer.

Software updates can be done using the WiFi connection, letting MAC and PC users sync the use of a computer.

Contents include:

• Stiletto SL100 Receiver
• Stiletto Standard Battery
• Stiletto Slim Battery
• Earbud Headphones
• Stiletto Antenna Headset (not required in most areas to listen live)
• USB Cable
• AC Adapter

Dimensions 2″W x 4.5″H x 11/16″D (13/16″D with Extended Standard Battery)

The Stiletto is priced at US $349.