During today's Apple event, Steve Jobs claimed that the iPod Touch was outselling the PSP and DS combined, and revealed a new version of the popular device modeled after the iPhone 4. The new iPod Touch has all the gaming capabilities of the phone, without the AT&T contract: iOS 4.1 with Game Center is a big deal, and Apple's crammed an A4 chip into the new iPod Touch along wit a 3-axis gyroscope, plus upgraded the screen with Retina Display. The redesign even features a front-facing camera.

The new iPod Touch will be available next week in an 8GB model for $229, a 32 GB model for $299 and a 64GB model for $399. You can pre-order it now.

This article was originally published on Joystiq.