It looks like the Apple TV has some new competition from Sony in the form of the Bravia Internet Video Link. It will ship on July 31st.
The device will only work with Sony content, and does not contain a hard drive. It also only works with Sony Bravia HDTVs. The total price is the same as the Apple TV, at $299.
You have to wonder what Sony's overall plan is for this product. It doesn't even work with all Sony televisions, let alone all the televisions on the market. This relegates the device to a tiny subset of televisions; I could count four on their products page.
Ok, so it's a niche player from the outset, designed more as a peripheral than an actual living room media device. But if it's just a minor extension to a Bravia HDTV, why does it cost $299? For that price, the Apple TV and most other digital media extenders include a hard drive. For some reason Sony thinks it's worth almost $300 to simply connect your TV to your computer.
If the Apple TV is a little too expensive for you, the Bravia Internet Video Link is highway robbery.