Apple has updated its Online Store with a new $199 iPod touch, discontinuing the frontside-only $229 iPod touch in the process. The new 16 GB iPod touch, which ships today, is now almost identical to the 32 GB and 64 GB models, including a rear camera. However, it seems that the $9 loop accessory is not bundled with the $199 model. Customers wanting the loop will have to purchase it separately. Incidentally, this means that the 16 GB SKU is now available in the same color choices as the more expensive sizes, no longer limited to only Space Gray.

The prices for the 32 GB and 64 GB model have also fallen. The 32 GB model now costs $249 (down from $299) and the 64 GB model costs $299 (from $399), a significant $100 drop.

These new price points aren’t particularly shocking or unprecedented since we have seen better prices for both models within the past couple of months. Staples ran a 1-day sale that yielded the 32GB iPod touch for $224 and the 64GB iPod touch for $299. Also, the new retail prices have prompted Apple to drop refurbished prices. The 32GB model is now $199 (down from $219) and the 64GB model is now $239 (down from $299). The 16GB model without a rear camera is now just $149 refurbished (down from $189). As always, make sure you are following 9to5Toys to keep up with the best prices for everything Apple.

This now means there is only a $50 difference between storage sizes, unlike iPads and iPhones which go up in $100 increments. Apple has published a press release for the new iPod touch variant which is below:

Apple® today announced its 16GB iPod touch® is now available in vibrant colors and equipped with a 5 megapixel iSight® camera for just $199. The entire iPod touch lineup features the 5 megapixel iSight camera with 1080p HD video recording, brilliant 4-inch Retina® display, Apple’s A5 chip and FaceTime® camera. iPod touch features an ultra-thin and light anodized aluminum design and is available in pink, yellow, blue, silver, space gray and (PRODUCT) RED. iPod touch comes in a 16GB model for $199, 32GB for $249, and 64GB for $299.

iPod touch comes with iOS 7, offering more than 200 features including Camera app filters that let you easily add real-time photo effects. Additionally, the Photos app offers ways to automatically organize your photos based on time and location. With iCloud® Photo Sharing, it’s simple to share photos and videos with exactly the people you want to see them and your friends and family can comment and access their shared streams from any iPhone®, iPad®, iPod touch, Mac® or PC at any time. This fall, iOS 8 will be supported on the entire iPod touch lineup.

With the revolutionary App Store℠ on iPod touch, users in 155 countries have access to over 1.2 million apps for iPhone, iPad and iPod touch, including hundreds of thousands of games. More than 75 billion apps have been downloaded from the App Store. Customers also have the iTunes Store® at their fingertips, giving instant access to an incredible selection of music, TV shows, movies and books to purchase and download directly to their iPod touch.

Pricing & Availability iPod touch 16GB is available starting in the US today and worldwide in the coming days, in pink, yellow, blue, silver and space gray through the Apple Online Store (www.apple.com), Apple’s retail stores and Apple Authorized Resellers for a suggested price of $199 (US). Starting today, the 32GB and 64GB models have been repriced worldwide, at a suggested price of $249 (US) for the 32GB model and $299 (US) for the 64GB model. iPod touch requires a Wi-Fi connection or a Mac with a USB 2.0 or USB 3.0 port, Mac OS X v10.6.8 or later and iTunes® 10.7 or later; or a Windows PC with a USB 2.0 port and Windows 7, Windows Vista or Windows XP Home or Professional with Service Pack 3 or later and iTunes 10.7 or later. An Apple ID is required for some iPod touch features.