Apple has just announced this morning that it’s 160 GB Apple TV device is now $100 less at $229. This only fuels  rumours  that Apple is now aiming its sights on high resolution devices using its all-new iTunes Extras/LP format. However this format is limited at the moment as it doesn’t yet play on an iPhone or an iPod touch.

Piper Jaffray’s Gene Munster recently predicted sales of 6.6 million Apple TV’s by the end of this year.

He said: “We expect Apple to design a connected television over the next two years (launching in 2011) with DVR functionality built in. These recorded shows could then sync with Macs, iPhones and iPods over a wireless network. The device would push Apple further into the digital living room with interactive TV, music, movie, and gaming features. With its iTunes ecosystem, Apple could develop a unique TV without any set-top-boxes or devices attached.”

Via 9to5Mac