The new Apple TV is more flexible and capable. It can stream movies, music and photos from computers on the network, as well as from iOS devices such as the iPad, iPhone and iPod Touch (which, now that Apple also announced a touchscreen iPod Nano today, seems misnamed) through Apple's AirPlay. There is also access to online content from Flickr, YouTube and, most significantly, Netflix.
It is now significantly smaller than previous versions (about 1/4 the size) and drastically cheaper at only $99.
It is a far simpler machine, with no internal storage and a rental-only model for purchases.
Apple TV is clearly a more desirable product now, with a no-brainer price, as well as cheaper rentals of TV shows (now, instead of $2.99 per episode, it will be only 99 cents—although currently only ABC and Fox have signed on). But is it revolutionary? Clearly the streaming from iOS devices is very cool for iCentric households. I can only imagine the Apple-idealized iCouple sitting on their Design Within Reach couch in a Noe Valley townhouse fighting over whose device should be streaming to the Apple TV (Her: "I want to stream Nick and Norah's Infinite Playlist from my iPad"; Him: "I want to stream The Squid and the Whale! from my iPhone!"). Yet I'm still a bit surprised that Jobs didn't demand a bit more from this device, given its potential to truly expand the iOS line.
In fact, it seems the device is running the same old Apple TV OS as before. Obviously, the Apple TV is not a touchscreen device (imagine how annoying that would be), so iOS would be an awkward port to Apple TV. But because it isn't iOS-based, the Apple TV misses out on the potential for thousands of apps and a creative developer network that could greatly expand its power and appeal. Just think—a $99 gaming device based on smart phone architecture! It would have instantly undercut the entire console market—plus, they could have made iPod Touches and iPhones the controllers. That could get expensive quickly, but you can see the potential.
In fact, as it is, the Apple TV is essentially a gaming console without the gaming. Most of what it does—streaming video, music and photos, plus rentals and Netflix—can already be done on an Xbox 360 or PlayStation 3. But that may not be such a terrible idea. It's about half the price of the cheapest console, and it should appeal in a nice way to the non-gamer with its simple interface and unobtrusive design.
That said, if this is Apple's hobby, I'm still not sure they're finished tinkering with the platform. I fully expect an iOS box tapping into the TV in the near future.
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