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Apple PVR really on the way?

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AppleTVPBS tech guru Robert Cringely is going around spreading rumors about an upcoming Apple upgrade. Here's the deal (best taken with two asprin and a grain of salt): Apple will add a chip that handles video decoding and encoding to all of its computers this year.

The chip will be capable of proessing H.264 videos, meaning you can watch all of those videos downloaded from the iTunes store without putting any real strain on your CPU at all. The bigger story will be the chip's encoding power. Because with great power comes... great capability of recording television programs.

It'll cost Apple about $50 per device to add the new chip. But the chip could pay for itself in no time flat by ensuring that every Apple computer sold, from the Mac Mini to the high end Mac Pro will be able to handle all sorts of multimedia and video functions. And in a world where computers are increasingly used to consume, create, and upload videos to YouTube, that's a killer app.

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