We have heard rumors before that Apple [AAPL]is working on a new version of their Apple TV, although Steve Jobs recently described Apple TV as a hobby, we suspect Apple has something up its sleeve for Apple TV.
Engadget reported back in May that Apple were working on a new version of Apple TV that would be based on Apple’s iOS 4 and would retail for about $99. Now the NYT is reporting the same and that Apple are taking the Apple TV seriously this time.
According to sources closes to Apple, they are working on an update to the Apple TV software which will give users a completely re-designed interface, which could be based on iOS 4, although they did not say whether the hardware would get revamped.
Apple could possibly just update the software for Apple TV, and then reduce the price of the existing hardware. If the new Apple TV was based on iOS 4, and gave users the ability to download apps and games as well as movies and music it could end up being popular.
Would you buy and Apple TV if Apple managed to get the software right, and it had the ability to play games as well as watch movies?