Following up on the iOS 4.1 announcement, Apple unveiled three new iPod models to refresh their music player lineup. The iPod Shuffle will go back to its familiar matchbook-like form, complete with buttons and clip, and will hold 2 GB of music; the new Shuffle will be available in five different colors and retail for $49. As reported across the internet, the new iPod Nano will be a small, multitouch, square device, have a clip — like the Shuffle — and will be sold in seven different colors; including a Product(RED) version. It will be available in an 8 GB model for $149 and a 16 GB model for $179.

And of course, the iPod Touch was not left out of the upgrade festival. Apple’s CEO Steve Jobs touted that the iPod Touch is the most popular portable gaming device in the world; outselling Sony and Nintendo combined. The new device is thinner, lighter, has Apple’s Retina display, 1 GHz A4 processor, front facing camera with FaceTime support, rear-facing camera with 720p HD recording, iOS 4.1 support, and 3-axis gyroscope. The iPod Touch will retail for: 8GB $229, 32 GB $299, 64 GB $399.

All the new iPod models will be available for pre-order today and will begin shipping next week.

Some other highlights from the event:

Apple has sold more than 275 Million iPods Worldwide!!

Steve Jobs just told an audience that the iPod touch alone outsells Nintendo’s DS and Sony’s PlayStation Portable combined, worldwide. How many games iPod touch users actually play and for how long wasn’t discussed, but Jobs said 1.5 billion “games and entertainment” apps have been downloaded — again, on the iPod touch alone, never mind all those iPhones. It is now the #1 selling hand held gaming device! (I actually agree based on the content and games I am able to play with on my iPhone).

Apple has pass the 11.5 Billion mark for iTunes downloads since launch…That is a whole lot of songs!!