ATV revision second half of 2008?

I don't know what apple is waiting for. Sales of the apple TV have been lower than expected and their share of the video market is not so good. They need to update the device with nice features (next gen optical drive, 1080P Support, larger hard drive, DVR capabilities) to really compete. I don't think this current generation device is worth the money. The longer they wait to update the device, the more business they will lose.

DVR and an HD disc drive are not gonna happen, for various reasons.

But even though there are hardware upgrade possibilities like a bigger HD, 1080, etc. with one single software update with

- movie rentals
- iTS store from appleTV
- 5.1 discrete surround
- HD downloads

it would fly off the shelves. Until then they should drop the price by a $100.

Pro Logic II sound quality is not that bad. I'd rather they use file size on improving image quality instead of on slightly better surround audio.

I don't think TV shows look as sharp as the existing resolution would allow, so going to HD is not necessary, yet. A slightly less compressed video at the same resolution could be a better compromise. Apple can make the shows or movies have more resolution without actually improving image quality, but that would only satisfy the numbers geeks.

I think movie rentals at a reasonable price would be the best new feature. It seems $5 is about the going rate for video on demand, either for cable or web based services. That would make it competitive with store based rentals, but still too expensive compared to Netflix or Blockbuster's DVDs-in-the-mail subscription service. If it is $5, I could use it as an impulse rental every now and then, but it would be too expensive to switch from my subscription to Apple's service. Sort of like $2 TV shows. I may buy once in a while when my VCR malfunctions, but not on a regular basis.

I think that HD movie offerings would be a smart move. People are holding off on Blu-Ray vs. HD-DVD because they are unsure which format will win in the end. If Apple offers HD movies, and perhaps TV shows, then it circumvents all of the format war problems.

Whatever they decide, I hope they do it soon because I'm itching to buy an Apple TV but am holding off in the hopes of an upgrade.

allow divx playback would be good.

I don't think either optical format will "win." With 1TB+ hard drives becoming cheaper and cheaper, digital downloads will be the way to go. If this rumor is even slightly true, I think Microsoft hit the nail on the head. It would be foolish for Apple to choose an optical format (for media) because it would raise TV prices too high for the average consumer and likely yield little benefit in the long run. Apple needs to win NBC back at all costs and add HD movies to iTunes. Otherwise, they will never be able to compete with products like Tivo's upcoming digital distribution plan and new on-demand fiber optic services (ATT U-verse, Verizon FiOS, etc.) Some may argue that Apple shouldn't venture into these areas, but iTunes needs to constantly evolve and expand to keep the attention of its' customers -- and their wallets.

I agree, I think a optical drive would increase the cost too much. Having HD content available through Itunes would be a great first start. They would have to significantly upgrade the capacity of the internal hard drive. I have a DVR through comcast and I can only record about 10 hours of HD content.