What's the difference between new Apple TV and last one

What's the difference between the last Apple TV model and the new one? Do I need to buy the new one or will the sofware update catch me up to the same standard as the new one?

The bottom line is that the new one will output 1080p, this is achieved by an upgraded processor and reportedly additional RAM.
There are no additional features included in the new model that aren't included the older one other than the higher resolution output.

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