Just before Apple announced the New iPad, they announced the latest Apple TV. The newest Apple TV brings with it one simple upgrade and that is an A5 Single core processor. To some people that means nothing but to the real geeks that means more processing power and thus the ability to decode higher resolution video. That is exactly what it does. The newest Apple tv allows you to watch 1080p. This was the most wanted feature of the Apple Tv 2 when it launched two years ago.
Here is a nice stitched together list of the specs of the newest Apple TV.
The only difference here is that it supports H.264 1080p format, which was the most wanted and needed update. The new Apple TV still has all the same support has the prevous model including iTunes Store, Netflix, NHL, NBA, MLB, AirPlay, iCloud, YouTube, Vimeo, Flickr, WSJ Live, and internet Radio. The price comes in at the same €109/$99 and makes it an obvous choice for those which to watch 1080p content, if you do not watch 1080p or even have a 1080p TV and already have the original the Apple TV 2nd gen, then there is no need to purchase the new version.