Apple Corp. (formerly Apple Computer Corp.) recently announced not only their snazzy new iPhone (and promptly got sued by Cisco for stealing the name), but also revealed details on the Apple TV, beginning Apple’s move from the computer and the pocket to the living room, where they’ll have to compete with the likes of Microsoft, Akimbo, MovieBeam, and even TiVo and the cable TV companies.

After looking through the press releases and news stories on the Apple TV, which has not received nearly so much press as the iPhone, I thought it might be helpful to break down the differences between the Apple TV and an Xbox 360, since both devices are designed to bridge the gap between computers and living room entertainment, and since it’s always fun to pit Apple against Microsoft. With that goal in mind, here are some of the stats, side-by-side:

For either option, the DRM (digital rights management) needs to be a consideration. The Apple TV can only play iTunes media, while the Xbox 360 cannot play iTunes media. Thus if all your media is already stuck in the formats used by Apple, then you’ll have to use either an Apple TV or an Apple computer to play the media. That really only pertains to media purchased through the iTunes store of course – the CDs that you ripped should play through pretty much anything. If you use a Mac, though, you won’t be able to stream your media in any format to an Xbox.

If you haven’t purchased anything through the iTunes store, or if you have video in non-QuickTime formats such as Divx, then a Xbox 360 should be able to play your media. A problem with the Xbox 360 is the need to subscribe to the Xbox Live Gold service. That’s not a requirement to play media from your PC; it is a requirement to purchase media directly through your Xbox. A year’s subscription costs $49.99.

The Xbox360, can, of course, play video games, DVDs, and other media on its own. The Apple TV is basically a larger, non-portable iPod, minus the click-wheel. Because of this, and because the box retails for $299, some have suggested that you just hook up a computer, such as a Mac Mini, to your TV if you want to play iTunes media on your television. You can check out a comparison between Apple TV and the Mac Mini here.

Personally, the only compelling reason to get an Apple TV, unless you enjoy having ten different devices plugged into your television, is if all of your media is locked into the proprietary iTunes (“FairPlay”) format. The Apple TV is nowhere near a DVR or a media PC (like Windows Media Center). If all you’re looking for is to stream your music and videos, and if your media isn’t locked down by DRM technologies like FairPlay — which seem to mostly just prevent Fair Use — then there are other devices, besides an Apple TV, that can cover your needs, and soon you should be able to get your iTunes media off your computer and onto other devices. Those devices just won’t be made by Apple, and my bet is that Apple is not going to license the technology to Microsoft. So why not just pass on the Apple TV and wait for a DVR that can not only stream your iTunes media, but also play the latest, recorded episodes of your favorite shows. I wonder if you’ll be able to watch something like this weekends Saints v Bears playoff game, while you listen to your own soundtrack? If an Xbox 360 can let you play your own soundtrack during video games (not that you’d want to do anything to the Halo music), surely someone will let you do that with recorded television.