cheznous
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Both the PHA-2 and PHA-3 will come with a short WM-PORT to mini/ micro USB cable that will carry a digital out siginal from the: F880, A10, ZX1/ 2 Walkmans.
The WMC-NWH10 cable is only necessary when outputting digital out signal to a non Sony PHA device, such as an USB DAC from another manufacturer. Some of the Sony wireless speaker range (SRS-X9) will also requires the WMC-NWH10 for the above Walkmans to connect digitally.
Is this from practical experience or a quote from somewhere. Reason I ask is that I have the ZX1 and I have the PHA3 and the short cable you refer to does not work.
The only way to get the ZX1 to work with the PHA3 using digital output is with the NWH10 cable, just like the Hugo.