A method and apparatus for switching input terminals based on device capability are disclosed. The method supplies a digital signal and an analog signal to a device. The method includes examination of whether or not a device is receiving a digital signal in an eligible format. The method also selects an analog input terminal to receive an analog signal unless the digital signal is being provided in the eligible format. The apparatus includes a digital input terminal to receive a digital signal, an analog input terminal to receive an analog signal, an IEEE1394 interface coupled with the digital input terminal, a HD decoder coupled with the IEEE1394 interface, a memory and a selector which selects the digital input terminal if the digital signal is in an eligible format for the device. The apparatus otherwise selects the analog input terminal. The selector may include a controller for examining whether or not the decoder is capable of decoding the digital signal, and a switch controlled by the controller so as to select the digital input terminal if the decoder is capable of decoding the digital signal, otherwise to select the analog input terminal.