Apple Closer to the Living Room

Updated from 3:56 p.m. EDT

SAN FRANCISCO -- Apple Computer (AAPL Quote) is finally heading into the living room -- or at least it aims to by the beginning of the year.

Beginning in January, Apple plans to offer a new device, code-named iTV, that will allow users to easily watch and listen to digital media -- movies, songs, photos -- on their home entertainment systems.

Although the company has clearly been moving in that direction for a while, the new device marks the first time Apple will offer a product specifically targeted at the so-called digital living room. ...