The long-awaited update to the Apple TV has been finally announced during the current Macworld Expo, and it's quite the pleasant surprise: aside from the new Apple TV software that lets users rent movies, the price for the Apple TV unit has been significantly lowered as well.

So what's up with the new Apple TV software? It now includes iTunes movie rentals, which lets people rent DVD-quality movie titles from its library for only US$ 2.99, or US$ 3.99 for new releases. Also, viewers have the option to rent high-definition versions of the films for just a dollar more (US$ 3.99 for library titles and US$ 4.99 for new titles).

Also, Apple TV has been made more affordable, now that the price is down to only US$ 299 for the 40GB unit. The 160GB model, also available in Canada, is priced at US$ 329.