Jobs also announced a deal with Starbucks. When you enter a Starbucks with your iPod touch or iPhone, a Starbucks button pops up that gives you the option to buy music from the featured artist via the wireless connectivity.
The batter offers 22 hours of audio playback or 5 hours of video playback.
The iPod touch will be available this month in two configurations-- an 8GB model for $299, and a 16GB for $399.
See Engadget, Gizmodo, CrunchGear and news.com for the play-by-play of the announcement.
Photo: Ina Fried