With typical Steve Jobs flair, Apple introduced on Wednesday an entirely new player called the iPod Touch, while relegating its current high-end iPod to "Classic" status.

Sony on Wednesday bolstered its support for Apple's iPod by introducing a new boombox and clock radio that enable customers to plug their iPods directly into the devices. Once a fierce rival of Apple, Sony is now taking the position that the iPod is like a CD and has decided to embrace it.

Apple CEO Steve Jobs on Wednesday surprised attendees at a special event in San Francisco by introducing a completely new addition to its popular iPod line that will replace the iPod mini. The wafer-thin iPod Nano sports a color screen and holds 1,000 songs in a form factor slimmer than a #2 pencil.

Available in 30GB and 80GB models, the new iPod features increase battery life that ups video playback from 2 hours to 3.5 hours. The 80GB iPod can play video for 6.5 hours, Apple says. Other new features include gapless playback and instant searching by letter.

Apple may have slipped up and given the first public confirmation of the long-rumored touch-screen iPod. In a PDF document intended for developers discussing the iPod notes feature, the Cupertino, Calif. company references such a device.

It's official. At an event in San Jose Wednesday, Apple ended months of speculation by introducing the first video-enabled iPod, moving the company into the portable media center space.

Not even the Queen is immune to the allure of the iPod, according to British daily The Sun. The paper reported on Friday that Queen Elizabeth II had authorized the purchase of a 6GB silver iPod Mini. According to a royal insider, "the Queen loves music and was impressed by how small and handy the iPod is."

In what appears to be a preemptive measure, especially considering a recent lawsuit surrounding the iPod Nano's alleged scratching problem, Apple has alerted its partners to accept returns for any video iPod that is experiencing hardware failure.

Microsoft may be battling the iPod on the digital music front, but on the gaming side Redmond has embraced its Apple rival. The Xbox 360 will enable users to connect a portable music player, including an iPod, to the system and browse or play back music through the console's interface while watching 50 visualizations.

In addition, Apple has added a 2GB model at $69, which still comes in below its smaller cousin's price before the drop. Again, that price is more compeitive in line with the likes of Samsung and Sandisk.