Microsoft finally confirms the Zune HD

After months of rumors, Microsoft finally confirmed yesterday the existence of the next generation Zune player called the Zune HD. The new Zune HD will have the following features:

“Zune HD comes with a built-in HD Radio receiver so users can listen to higher-quality sound than traditional radio on the go. Users also will have access to the additional song and artist data broadcast by HD Radio stations as well as additional channels from their favorite stations multicasting in HD. If you don’t like the song playing on your station’s HD channel, switch to its HD2 or HD3 channels for additional programming.
3.3 inch OLED touch screen interface with a 16:9 widescreen format display (480×272 resolution).
The HD-compatible output lets Zune HD customers playback supported HD video files from the device through a premium high-definition multimedia interface (HDMI) audiovisual docking station (sold separately) direct to an HD TV in 720p.
Supported 720p HD video files will play on the device but downscaled to fit at 480 x 272. You’ll still be able to output in HD.
Zune HD will include a full-screen Internet browser optimized for multitouch functionality.
Wi-Fi enabled as with previous Zune products – allows you to connect, update, and buy content wirelessly from Wi-Fi hotspots.
Built-in accelerometer
Touch-screen QWERTY keyboard

Microsoft is finally taking on Apple’s iPod touch with the new Zune HD product and hoping that a feature such as built-in HD Radio tuner will help differentiate itself from the pack. The real question is – will people really care about HD Radio enough to buy into the Zune story? The iPod touch has a major feature going for it that Microsoft has really yet to match – a large 3rd party application community in the App Store which turns the iPod touch into essentially a portable computer of sorts. Then again – one could argue that the Zune focuses in on one thing and one thing only – delivering high quality multimedia content to the user.

Finally, Microsoft announced that the Zune brand experience would be extended to the Xbox LIVE Video Marketplace. The Zune will occupy the first slot within the Xbox user interface in the Xbox LIVE Video Marketplace. According to Enrique Rodriquez, corporate vice president of the Microsoft TV, Video, and Music Business Group, “Delivering on Microsoft’s connected entertainment vision, this news marks a turning point for Zune as it brings cross-platform experiences and premium video content to living rooms around the world.”

No word on pricing nor availability at this time.