Apple CEO Steve Jobs announces a new iPod with wider screen and video playback features.

The new iPod will not be called iPod video, it is just called iPod. The new Apple portable player will come in 20GB and 60GB configurations. The original rumor of Apple offering music videos from July has become true.
New iTunes 6.0 will feature music video downloads at $1.99 per video. About 2,000 music videos should be available at launch.
Additionally, and I think this is a very, very cool thing, Apple will offer TV shows for download at also $1.99. The vidoes are only in QVGA resolution, to please the TV networks. Watching those videos (320x240px) on a TV or monitor is of course not cool.

The new Apple iPod. The 30GB version is selling for $299 and the 60GB iPod for $399. The display measures 2.5 inch, which is smaller than your average portable video player on the market. Resolution is 320x240 pixels. Battery life is up at 20 hours.
The new iPod also comes in black. See photo below.
More details on the Apple iPod page.