The new Apple TV won't change its name to iTV but pretty much everything has; the Apple TV has been significantly revamped with the device now being only a quarter the size of its predecessor (it's also slightly slimmer).
As expected, the new box shares the same hardware foundations as the iPhone, the iPod Touch and the iPad but without the screen and the battery; the 6w power supply is now built in and there's a gorgeous aluminium remote control.
Connections have also been trimmed down considerably; only the Ethernet port, an HDMI port, the optical audio out and the power connector remain. No more component audio and video but you do get a Airport Express, built in IR receiver, and 802.11n Wi-Fi.
There's no internal storage but you will still be able to stream 720p HD content from iTunes and from third parties like Netflix, Flickr and Youtube and access content from other devices connected to your network.
However, the biggest selling point is the price at which it will be sold. At £99 (down from £229), the Apple TV will be a serious contender to complement your existing set top boxes in the lounge.
Apple doesn't say which OS it is using but given that the old one was based on Mac OSX 10.5, it is likely that the software platform has been completely changed, possibly for a customised version of iOS.