There's a new WD TV on the scene, but not the rumoured/leaked successor you might have been hoping for. Rather, the WD TV Mini is a downsized, slightly less feature-rich but cheaper alternative to its predecessor.
The main sacrifice is the lack of 1080p video output, with the mini limited to 1080i. Format support is lessened versus the WD TV. The Mini bests the WD TV by playing RealVideo, but it won't work with MKV files and h.264 and AVC are a no-go, too. Subtitle display is featured, at least. Audio is better taken care of, with all the common offenders catered for, namely MP3, WAV, WMA, AAC, FLAC and OGG. JPEG, GIF, TIFF, BMP and PNG images can be displayed.
Some criticism is probably deserved for the lack of an HDMI output, but if you really need that, the fully fledged WD TV is probably more up your street and if you don't, composite and Component should be perfectly fine. A digital optical output is featured, enabling multi-channel sound to be passed to an AV receiver - the unit itself will only cope with stereo.
The US MSRP is $99, so UK pricing should hopefully hit £60. We're still waiting for confirmation the WD TV Mini will launch here, though.