New iPhones can hold up to 512 GB of pictures, videos, and apps these days, but iPod storage reached its highest point with the 160 GB Classic model in 2007; newer models, the 2015 iPod Touch, most recently, never got beyond 128 GB of storage max. Now Apple has announced a new iPod Touch, its first in nearly four years, and while it doesn't store as much as the highest end iPhones, with a 256 GB model, it finally tops the old Classic in capacity. It shares a processor (an A10 Fusion chip) with the iPhone 7, and unlike the newest iPhones, it also still features a home screen button - and, more importantly, a headphone jack.

The Verge reports that the bezeled 4-inch display and cameras on the new iPod are the same as those on the 2015 model, but that the updated processor will give it enough power for Apple’s ARKit augmented reality apps and Group FaceTime chats, neither of which were available on the 2015 version.

If you think Apple might have upgraded the iPod's storage capacity for the purpose of storing high fidelity audio files, think again; instead, it's hoping the new iPod will be an essential vehicle for its upcoming Apple Arcade gaming subscription service. The Verge explains:

More than 1 billion people have downloaded games from the App Store, and there are more than 300,000 games available already. Apple is aiming to curate some of these games into its Apple Arcade subscription service. There will be 100 new and exclusive games available on Apple Arcade, which will launch on the iPhone, iPad, Mac, and Apple TV.

These games won’t be available on any other mobile platform or any subscription service other than Apple Arcade. Games will be downloaded and played straight from the App Store, and subscribers will be able to try games whenever they want and resume them across devices. All of the game features, content, and future updates will be included, and there will be no ads shown within the games.

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