A new AppleTV?

This could be amazing!  There is a rumor from TUAW that the next AppleTV could be $99 and have little to no storage but rely on cloud or Time Capsule as a storage component.  At $200 the system lacked quite a bit compared to other items on the market AND it just did not have the horsepower to stream via Boxee or the like to download and stream even standard definition.  This update could bring about better performance, lower cost and true 1080p.  It could also expand the storage by using something like the Time Capsule (1-2TB of disk) is a bit more suitable for growing video libraries.

More to come as more information surfaces.  Will this be another “one more thing…” during WWDC early next month?  More to come.

Engadget also posted the following:

The new architecture of the device will be based directly on the iPhone 4, meaning it will get the same internals, down to that A4 CPU and a limited amount of flash storage — 16GB to be exact — though it will be capable of full 1080p HD (!). The device is said to be quite small with a scarce amount of ports (only the power socket and video out), and has been described to some as “an iPhone without a screen.” Are you ready for the real shocker? According to our sources, the price-point for the device will be $99.

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