Time Capsule is a great product that Apple announced today and will begin shipping in February. Time Capsule is basically a Airport Extreme base station with a 500GB or 1TB hard drive built into it to be used with Time Machine.

Time Capsule will allow you to not only backup one of your computers to the hard drive over Wifi (or eathernet) but you can backup pretty much all of your Macs to Time Capsule.

The pricing for Time Capsule will be $299 for the 500GB version and $499 for the 1TB version (purchase it here).

And in case you haven’t seen it, check out the latest Mac ad talking about Time Machine:

One last thing I’d like to say about this, I wonder if this also means that old Airport Extreme base stations would work the same way when a hard drive is plugged into the USB port?