Apple updated its iPod Touch, using the A10 Fusion chip which debuted in the iPhone 7 family and subsequently made it into the iPad line.

The company said the update delivers improved performance in games and, for the first time on iPod, immersive AR and Group FaceTime support.

Apple noted that the device is the most affordable in the iOS family, priced at $199 with 32GB of storage, providing an entry-point to the platform for cost-sensitive buyers. It also adds a 256GB capacity option at $399, with a 128GB version sitting between ($299).

In a statement, Apple touted its music credentials – “a catalogue of over 50 million songs, thousands of playlists, Beats 1 Radio and daily editorial selections from the world’s best music experts” – and its games proposition, including the forthcoming Apple Arcade subscription service.

In terms of physical design, the device retains the same shape as previous versions, including the presence of a large home button. It has a 4-inch touch screen, 8MP main camera and 1.2MP front-facing camera for 720p FaceTime calls.

The last iPod update was in 2015, at which point it moved to the A8 processor used in the prior-year’s iPhone 6.