It has two wheels that allow it to rotate and spin, as well as two bands of colored LED light running around its edge and cup-like "wings" (or "arms" according to the Sony sonystyle USA website) which can open and close on either end, all of which can be synchronized to the music being played.
Rolly can play music streamed directly from any Bluetooth-enabled cell phone, computer, or mp3 player.
The Rolly player uses .mtf files to store motion data along with a particular music track.
Rolly also has an accelerometer which detects if the player is laying horizontally or being held upright.
You can return to continuous play (light color blue) by simply repeating this process.