Jon Ireson of DualShockers writes, "Today Apple sources have confirmed a tip Engadget received about the next Apple TV. The latest iteration in Apple’s run in the home console industry is based on the architecture of the iPhone 4G containing the A4 CPU. Instead of OS-X lite the next generation of Apple TV will feature an iPhone-based operating system fundamentally compliant with the iPad offerings we have seen for gaming thus far. This system is also able to display in full 1080p high definition!
This is a huge move from a powerful player in multiple industries which will, among other things, launch it into an even more appealing position for video game publishers and developers to release their games on. Cloud storage will even be supported as Apple embraces forward-thinking technologies and seeks to further the standard of streaming entertainment. Video games will see a new player emerge in the high-end home console sector and the “Big 3″ will now become the “Big 4″..."