iPod touch:

• This is now the most popular iPod
• Steve claims the iPod touch is now the #1 portable game player in the world. iPod touch outsells Nintendo and Sony portable game players combined. Has 50+ percent of the market share
• 1.5 billion game and entertainment downloads just to iPod touch alone
• New iPod touch introduced. Thinner than ever. Basically the same look as the iPod touch (though slightly slanted at the edges)
• Comes with retina display – same as the one on the iPhone
• A4 chip
• 3 axis gyro
• iOS 4.1 + Game Center
• Front Facing Camera
• Rear Camera with HD recording
• 40 hours of music playback
• FaceTime support
• 8GB for $229
• 32GB for $299
• 64GB for $399

All new iPods available starting next week with preorders available now.

10:36am: Steve now showing off some new ads.

Wait.. was that a Beatles picture I see?

10:38am: Steve moving onto iTunes..

• 11.7 billion songs downloaded from iTunes
• 450 million TV episodes have been downloaded
• 100 million movies downloaded
• 35 million books downloaded
• 160 million accounts with credit cards and one-click shopping in 23 countries

Steve announces iTunes 10.

• New logo for iTunes 10 – they’re ditching the CD
• New hybrid view showing off album art if you have more than 5 songs for an album

Announces “Ping” in iTunes 10. It’s a social network for music. Facebook and Twitter meets iTunes.

• Follow your favorite artists and friends
• Discover the music they’re talking about and downloading
• Follow your friends and artists posts, photos, comments; see charts of music that your friends are downloading.
• See your favorite artists posts, music, and upcoming concerts
• Social music discovery
• Follow and be followed
• You can allow anyone to follow you OR you can control who can follow you (basically an approval mechanism). Be as public or private as you want.
• Over 17,000 concert listings
• 160 million iTunes users in 23 countries

Ping is also available on the iPhone and iPod touch. Ping will be in the iTunes App Store.