The original 40GB model has been dropped altogether, and the 160GB model is now available for US$229, down from the previous price of US$329. Is Apple doing this to move inventory in anticipation of a new device, or to clear things out before dropping the Apple TV line?
Regardless of what direction Cupertino is taking, the existing Apple TV needs a software update stat! AppleInsider has speculated that the iTunes LP format and iTunes Extras released last Wednesday are specifically designed to deliver content to Apple TV. They've noted that the content is designed for 1280 x 720 resolution, fitting the native resolution of the Apple TV. There are even html meta tags in the new content -- "hdtv-fullscreen" and "hdtv-cursoroff" -- that seem to indicate that these new formats were designed for the Apple TV.
If Apple is planning on doing something with their "hobby" device, it would behoove them to announce it before the Christmas buying season. Does anyone want to take bets on whether or not there will be an Apple TV event before the beginning of November?
Thanks to twofedoras for the tip!