Nice concise writing. Not.

If polled at the show, I too would have answered "yes" when asked if I was planning to pick up an AppleTV. After going home and discovering it plays only MPEG4 and H.264 content, however, with no support for MPEG1, MPEG2 or AVI, my "yes" has turned into a frustrated "absolutely not." Even the XBox 360, Microsoft's forray into this market, can play more formats. Of course it doesn't handle AVI either, and it's not cross-platform, but at least it'll play MPEG1 & 2. Is the MPEG2 license so prohibitively expensive that Apple declined to include it?

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Guest wrote:
Is the MPEG2 license so prohibitively expensive that Apple declined to include it?

IMO I'd probably say no, Apple charges a $29 fee to upgrade quicktime for MPEG 2 playback, since the AppleTV is based on OSX they could have made the MPEG 2 playback componet as a purchase upgrade option. They wouldnt be using the AppleTV to author MPEG2 content or including MPEG2 decoding chips in the device so I think its more about funneling traffic, We are talking Apple afterall, their best interest is to make money from the traffic to the itunes store. I too would like to see MPEG2 supported but why not include the inferior MPEG1 format I have no idea. At least they didnt decide to cripple (DRM) the Component HD output like Bluray has done, or I hope they have'nt!

I'm sure once this device hits the market, there will be software hacks to make the AppleTV more of an open system, One can only hope!

1. It doesn't do anything higher than 720p (although it will upconvert to 1080i). Who's the brainless wonder who didn't go up to 1080i/1080p?

2. It won't play DVD's at all whether they be blu-ray, hd dvd, or just plain old fashioned DVD's.

3. As several have already mentioned, it's missing formats.

For the record, I have a HDTV arriving in the next couple of days -- a Samsung LN-S4695D.

Imagine having an AppleTV and not being able to watch TV!
Its for ITMS only but I watch real TV not a few download Desperate Houswives - I actually like changing channels
I am a mac fan but won't be buying one

Look, it doesn't play DVDs because your Mac will, and you can stream from there! They probably assume you already own a DVD player. Why reinvent the wheel?

This also isn't intended to be a way for you to watch TV content. It's a way to get iTunes content onto your TV. Period.

It is also a first offering. Apple always adds functionality to later generations. Look at the iPod 1G. Small, B&W screen, 5 gigs, no calendar, no contacts, no Windows, Firewire only. Just that one model.

Later generations added functionality until it's where it is today, all the while they were also adding content to the iTunes store to give you something to play on it. They added models for different segments of the market and different price points.

Be patient, it'll get there. Plenty of people will tell you never buy a 1st gen Apple product. But there are enough of us loyal fans that will to get Apple to keep selling it so that you can have your later generation, better functioning model.

You can't ever have it all, especially 1st Generation!