Don't bury the Zune. It's not dead yet.
A CNET report confirms that a new version of Microsoft's
In an interview with Chris Stephenson, Zune's general manager of global marketing, news broke that the new device will feature an HD Radio receiver, the ability to play high-def video on televisions, Wi-Fi cybersurfing via a customized version of Internet Explorer, and an organic light-emitting diode (OLED) touchscreen. Microsoft will also be rebranding its Xbox Live digital video service under the Zune label, making it more than likely that the new Zune player will come with a a premium video store.
"This device is created to go head to head with the iPod touch," Stephenson told CNET.
That's big talk, considering the Zune's market share has thus far hovered somewhere around the iPod's ankles.
The new flash-memory-based Zune HD has a similar size and design to Apple's iPod touch. It obviously has a long way to go to match Apple's success, but the Zune HD seems poised to challenge many existing devices.
A satellite radio slayer?
HD Radio can't compete with the wide range of free Internet radio broadcasts, or the premium content offered by Sirius XM Radio
An iPod annihilator?
A DS destroyer?
Unlike Nintendo (OTC BB: NTDOY.PK) and Sony
Zune has a lot of ground to make up since its uninspiring debut three years ago. When even Microsoft devotees like Xbox hub GameStop
Microsoft has little choice but to swing. It's comforting, at least, to see it swing hard.
Other Zune-rific leads:
Longtime Fool contributor Rick Munarriz can't recall the last time he saw a Zune out in the wild. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.