Hasta La Gadget!

The Apple TV might receive a software overhaul based on the iOS operating system powering the iPad, iPhone and iPod Touch, sources have told The New York Times.

While anonymous sources claimed the company was planning a software upgrade for the set-top box, they noted that it was unclear whether Apple would introduce new hardware as well. NY Times writer Nick Bilton also said he’d heard that Apple’s newest hires included people with a background in television.

Some of these claims come in line with a recent rumor published by Engadget, which said Apple was planning to introduce a $100 Apple TV running iOS. The blog claimed the hardware would be redone as well — a minimal gadget described as an “iPhone without a screen,” containing only two ports: a power socket and a video-out.

In earnings calls, Apple executives have repeatedly called Apple TV a “hobby,” implying it has not been a breakthrough hit like the iPhone or iPod. Video entertainment has been a tough nut for Apple to crack, as the set-top box market is packed with competitors offering a multitude of ways to watch video. In addition, cable companies subsidize set-top boxes that include a DVR for recording programs.

An iOS-based Apple TV sounds feasible, though it remains a question as to how exactly such a device would work, since the interface is controlled by multitouch gestures. We would be surprised if Apple didn’t somehow incorporate its iPhone, iPod Touch or iPad as a controller. For gaming, the iPhone 4 is especially powerful as it contains a gyrosocope, making it even better than Nintendo’s Wiimote. However, it would seem strange if Apple sold an Apple TV that required a pricey iOS device as a controller.

Apple declined to comment on this story.

See Also:

• Apple TV Prototype Sells on eBay for 46 Bucks
• 5 Reasons Why Apple TV Rules, 5 Reasons Why it Sucks
• Why Apple TV Must Evolve to Avoid Extinction
• What We Want in an Apple TV

Image of a current Apple TV menu: Apple