Speculation that Apple Computer would unveil a video iPod on Wednesday was right.
The iPod has "been a huge hit for us, so it's time to replace it," Apple CEO Steve Jobs said as he showed the new product at a press event. "Yes it does video."
The music player will come in a 30GB model for $299 and a 60GB for $399. Those are the same prices as current models, which have capacities of 20GB and 60GB.
Jobs kicked off the event in San Jose, Calif., by revealing a new iMac G5 that will be similar to the current model, but thinner. It will have a built-in iSight camera with still and video capabilities and a remote control with a 10-foot range for music, photos and video.
At the gathering, Jobs used the tiny white remote control like an oversized iPod Shuffle to play a Black Eyed Peas video and an "Incredibles" DVD and also to play home movies and photos.