Apple today announced changes to its iPod touch lineup, dropping the price of the 8GB model from $229 to $199, breaking the important $200 price barrier.

iPod has revolutionized the way we listen to music and with over 320 million sold is the world’s most popular music player,” said Philip Schiller, Apple’s senior vice president of Worldwide Product Marketing. “iPod touch, now available in both black and white, is the best selling iPod ever, and with iOS 5 and iCloud it is better than ever.

No other changes were made to the iPod Touch so it still rocks its single core A4 processor and 256MB of RAM.  It will also work with iOS 5 and iCloud.