Well folks, there it is, the sexiest product Microsoft has ever manufactured. The Zune HD is official, and it's coming out this fall.

First, the tech nitty-gritty. Zune HD will feature a 480x272 multi-touch screen with capabilities for video output in 720p through a docking station. Expect downloadable apps, wi-fi, and other features typical of the portable music competition (see: iPhone touch). What sets it apart, however, is Xbox Live integration. Besides the completely mysterious mention of the "Zune music experience" being available on the Xbox 360, other features are hinted at. Sadly, they haven't said exactly what that will be yet, instead insisting that we pay close attention at E3. Rumors have suggested that certain Xbox Live Arcade titles would be playable on the new Zune HD, and it appears that those rumors might be true. I've been looking for an excuse to upgrade, and it looks like the Zune HD might be the reason I've been looking for.

The press release is below, and let this serve as yet another reminder to check out Gamervision's E3 coverage next week. If you hear that someone was shot while trying to steal a Zune HD from the show floor have some sympathy, I he was likely very, very excited.

Microsoft Announces the Expansion of the Zune Entertainment Service To New Platform and Markets; Confirms New Zune HD Portable Media Player
Premium Zune digital entertainment service to be available internationally on Xbox LIVE

REDMOND, Wash. - May 26, 2009 - Zune, Microsoft Corp.'s end-to-end music and entertainment service, today announced the evolution of Zune to a new platform and new markets. Zune will extend its video service to Xbox LIVE internationally this fall. This marks an important development in the Zune strategy and brings the Zune brand to over 17 million international Xbox LIVE subscribers. Additionally, Zune confirmed the next generation of its portable media player, Zune HD. Available in the U.S. this fall, Zune HD is the first portable media player with built-in HD Radio receiver, HD video output capabilities, OLED touch screen, wi-fi and an internet browser.

"The Zune music player is an integral part of the overall Zune experience and we're proud to be growing and extending our offering beyond the device," said Enrique Rodriguez, 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."

Zune Service Expands to New Platform

Zune will be a premium partner in the Xbox LIVE Video Marketplace, bringing an exciting catalogue of TV and film to the platform. Zune will occupy the first slot within the Xbox user interface in the Xbox LIVE Video Marketplace, exposing the Zune brand experience to millions of new consumers for the first time. At the Electronic Entertainment Expo next week, attendees will see first-hand how Zune integrates into Xbox LIVE creating a game-changing entertainment experience.

Introducing Zune HD

Zune HD is the next iteration of the Zune device family and brings a new level of listening and viewing experiences to the portable media player category.

• 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 will also have access to the additional song and artist data broadcasted 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 their HD2 or HD3 channels for additional programming
• The bright OLED touch screen interface allows users to flip through music, movies and other content with ease, and the 16:9 widescreen format display offers a premium viewing experience on the go
• The HD compatible output lets Zune HD customers playback video from the device through a premium HDMI A/V docking station
• Zune HD will include a full screen internet browser optimized for multi-touch
• Zune HD is wi-fi enabled allowing for instant streaming to the device from the more than 5 million track Zune music store

More information on Zune and related images are available at http://www.zune.net/press and http://www.zune.net/Zune HD

About Zune

Zune is Microsoft's music and entertainment brand that provides an integrated digital entertainment experience. The Zune platform includes a line of portable digital media players, elegant software, the Zune Marketplace online store, Zune Pass music subscription service, and the Zune Social online music community, created to help people discover more music. Zune is part of Microsoft's Entertainment and Devices Division and supports the company's software-based services vision to help drive innovation in the digital entertainment space. More information can be found online at http://www.zune.net/en-us/press.

About Xbox LIVE

Xbox LIVE connects more than 17 million members across 26 countries to each other and the entertainment they love. Home of more content from one remote than can be found from any device connected to the television, Xbox LIVE is also a unified online social network bringing friends together, no matter where they are - in the living room or across the world. More information and Xbox LIVE membership can be found online at http://www.xbox.com/en-us/live.

About Microsoft

Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

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1 Fall 2009 availability in the U.S., Canada, U.K., France, Italy, Ireland, Germany, Spain, Austria, Australia, Belgium, Denmark, Finland, Netherlands, New Zealand, Norway, Sweden and Switzerland.

2 Zune music experience will be available on Xbox 360 in [date]

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