Microsoft's new Zune HD media player will outperform and undercut the iPod Touch, according to an enthusiastic Redmond insider.
Neowin has an interview with (probably) a Microsoft software engineer working on the new player, which is due for launch in September.
The source says that the Zune HD will launch in 16GB and 32GB versions, with a 64GB model arriving later on.
Portable High Def cinema
Zune HD will be able to output 720p movies through a HDMI port, and its 3.6-inch OLED screen is reported to be fully multi-touch capable.
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Neowin's Microsoft insiders says the base 16GB Zune HD will sell "somewhere in the range of $249 -$280", which would place it $20 cheaper than the entry-level $300 iPod Touch.
He also says that: "Microsoft plans to have Zune interact with a variety of other Microsoft services." Quelle surprise.