Microsoft confirms Zune HD coming this fall

From CNET News.com: Microsoft on Tuesday confirmed its plans to take on the iPod Touch with a new, touch-screen Zune that will be able to surf the Web, play high-definition movies, and tune in to digital radio.

The Zune HD, which will be available in the U.S. only starting this fall, features an HD Radio tuner as well as an organic light-emitting diode (OLED) touch screen, Microsoft said. It is based on Windows CE and will use a version of Internet Explorer customized for its touch screen, Microsoft said.

The software maker did not announce pricing or capacity, though it said the device will use flash memory and attempt to take on Apple's high-end iPod models.

"This device is created to go head to head with the iPod Touch," Chris Stephenson, general manager of global marketing for Microsoft Zune, said in a telephone interview on Tuesday. Zune buyers will also be able to play HD content on their TVs via a dock, Microsoft said.

The software maker also said that at next week's E3 trade show in Los Angeles it will announce details on a new Zune-branded video service for the Xbox that will replace the current Xbox Live marketplace for TV and movies. The company didn't announce details or specifically say that content will be playable on both Zunes and the Xbox.

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