MacRumors.com

Apple finally did release a new iPod capable of playing videos. (press release). The new iPod supports MPEG4 and h.264 video formats and features a slightly wider screen design to accommodate the video playback.

30GB. $299
60GB. $399

2.5 inch screen
320x240
260,000 colors
MPEG4, h.264 Video Support
Video Out to TV
Holds over 150 hrs of video

Alongside the new iPod is iTunes 6 - which updates many features in the iTunes Music Store and also adds video sales. Apple is offering over 2000 music videos for sale ($1.99 each) and has partnered with television studios to be able to offer online TV Episode sales.

The press release also details over 2000 Music Videos, Pixar Short Films and hit TV shows available through iTunes. Videos are $1.99 a piece. Past and current episodes are available of popular shows including Lost and Desperate Housewives.

Pixar shorts: Boundin', Geri's Game, Luxo Jr. and more are available as well.

Download: iTunes 6 - Available now.