As Apple TVs begin to arrive in the US, some media outlets have had more than a few days to play with the new set-top device from Apple. While most reviews are calling the device a "simple and elegant," Apple TV--called a "big iPod"--has several significant shortcomings and may not be for all users given other options. Microsoft's Xbox 360 is said to offer better file format/service support, direct internet purchases (movie trailers and software updates are available through the internet), and more. Apple TV also only supports a limited number of file formats, according to PC Magazine's 4 out of 5 star review. Files that work in iTunes don't necessarily work on Apple TV, the publication says; they must be transcoded using Apple's QuickTime Pro (which recently obtained new Apple TV export options) or a third-party software application.

The same review notes that Apple's limited video content selection, high pricing, and limited storage (only 33GB of usable space) makes the device impractical for general video consumption.

CNET News.com also gave the device a 7.7 out of 10 rating, noting several limitations, including file support, quality of currently available iTunes content, lack of HD content--some of which is available via the Xbox 360 marketplace--an oversimplified remote can't control other devices, the inability to purchase iTunes content directly through Apple TV, no internet radio support, and the lack of bundled A/V cables.

"The main issues we have with Apple TV rest not in its performance: it does everything it claims to, and like all Apple products, with amazing ease of use. My problem is with the iTunes movie pricing," PC Magazine notes.

Unlike music, the article notes, most adults don't watch the same video twice, exacerbating the problem of pricing--especially given video rental services such as Netflix.

"What about Netflix? Should I pay $300 for an Apple TV and then about $12 a film on iTunes, when for the price of one iTunes film, I can just have new DVDs all the time? Netflix even offers a streaming service," PC Magazine writes.

"Without a subscription-based movie service or a lower price for films that you can only view for a limited time or a couple times, I think it's hard to convince people that Apple TV is a must-have. It doesn't cost a ton to fill up your iPod, but to load ten flicks that may only be watched once onto Apple TV is going to set you back well over $100…and loading in pirated content takes extra effort and some Quicktime [sic] skills."

Video quality, audio limitations mar good performance

CNET's review also notes the poor video resolution issues as well as consistency in video quality, which the review concluded "were a step down from what you'd see on a $50 DVD player" when played on a large-screen TV.

"Unfortunately, the excellent streaming performance is offset by a drawback that's more the fault of iTunes than Apple TV: generally disappointing video quality. Movies and TV shows in iTunes are currently available in what Apple calls "near-DVD quality"--a maximum of 640x480," the publication writes. "Perhaps 'bad analog cable quality' would be more descriptive--all of the videos were quite soft, lacking the sort of fine detail we've come to expect from well-mastered DVDs."

In addition to video resolutions and consistency issues, iTunes also only supports stereo sound, instead of surround sound, according to CNET. The review concludes the device is best for iTunes addicts, until Apple improves the video (and audio) quality of its iTunes content and offers better file conversion tools to expand the amount of content that can be displayed using Apple TV.