Word has been spreading for a while now that Apple has a version of the iPod in the works that will play MPEG4 video files. Like many Apple rumors, it is probably premature if not downright wishful thinking. Yet, as they persist one cannot escape the fact that such a product would fit into Apple’s game plan perfectly, especially after the rousing success of their iTunes service.

It is this service that drives the possibility of such a new player being created. The triumph of iTunes has had a direct affect on iPod sales, which, according to some sources, now accounts for one out of every two MP3 players sold — this despite the fact that the service is only for Mac users right now. Surely, this success can be repeated with a digital video portable.