Some guys took apart a new Apple TV & found out that it’s got 8 GB of Flash memory (plus space for more) inside. Since the device doesn’t actually allow users to store any audio or video content locally, this would seem to suggest that Apple is planning to open the device up to iPhone-style apps at some point. The implications of this should already be scaring the crap out of video game console manufacturers like Sony, Nintendo & Microsoft, but I suspect they don’t see the Apple TV’s “iPad guts” as a real competitor for their current or next-gen systems. However, I wonder if they’ve also considered the possibility that Apple could develop (read: acquire) some server technology (i.e. OnLive) that would allow users to stream games of unlimited size and complexity in full HD resolution from a central location, enabling AAA game developers to completely bypass issues of piracy, physical distribution & hardware limitations via a $99 box that never needs upgrading & could in all likelihood be given away free to end users with a online-service subscription. Most of the moving parts are already in place here (user accounts & billing through iTunes, stored value cards at nationwide retail, relationships with game publishers & developers, and now the set-top hardware) so Apple really just needs to wait for broadband internet speeds to reach an appropriate level, buy some big servers & flip the switch. Of course all of this assumes that they can get their head out of their ass about building a real online service with matchmaking & etc. but maybe they’ll learn a thing or two from this whole Ping business and surprise us yet. And if not, it would be pretty damn hilarious to see Microsoft come chugging along & knock down the whole iTunes house of cards by building the exact same thing on top of the existing Xbox platform.