In the press release announcing YouTube videos for Apple TV, Apple also reveals that they will be introducing a 160GB Apple TV for $399.
Apple TV, which includes the Apple Remote, is available through the Apple Store (www.apple.com), Apples retail stores and Apple Authorized Resellers for a suggested retail price of $299 (US). Apple TV with a 160GB hard drive will be available tomorrow for a suggested retail price of $399 (US). The YouTube feature for Apple TV will be available as a free software update in mid-June.
The current Apple TV costs $299 for a 40GB model.