It's been all over the blogosphere and even on the nightly news: "500,000 songs on your iPod!". Of course it's nonsense: the technology referred to is still years away, and as it is likely to appear in expensive forms long before Apple could adopt it for mass consumer use, the first products will probably be Enterprise storage devices and not iPods.
By the way, this isn't really "news" - IBM has been working on this for several years now. All that's new is that they've built a prototype.
This is called "racetrack" memory because the storage moves around a circuit. Strangely enough, that's been a problem: moving the bits has been slow, roughly equal to hard drive speeds. That's not so horrible: a solid state, high capacity low power device that is "only" as fast as a hard drive is still a big improvement, but apparently the physics of this are still being worked on and may be able to be solved.
I think the video at Engadget shows IBM's prototype : it definitely isn't anything ready to pop in an iPod.
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