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Video iPod Finally Here!

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.

The new iPod sports a 2.5-inch TFT display in a design similar to the iPod Nano. The 320×240 pixel display supports only 260,000 colors, but the iPod does include a video-out jack for hooking up to a TV. Real-time decoding of MPEG-4 and H.264 video content is supported.

The new iPod will come in sizes of 30 and 60GB, with retail prices of $299 and $399, in line with prices of the previous models, although with more capacity. Apple, noticing the high demand for its black iPod Nano, will also make the new model available in that color as well.

Both models are thinner than the current 20GB iPod.

Two new ads will help promote the iPod, including one starring U2 and another with Eminem, who incidentally just settled a lawsuit with Apple over using one of the rap artist’s songs in a recent iPod commercial without authorization.