There had been a few rumors flying around recently about a new Zune coming out this fall.  Turns out most of those rumors were true.  The next generation Zune will feature a touch screen for controls and be fully integrated into the Xbox 360 marketplace.  It's about time the 360 and Zune market places got together to offer the ability to download music, movies and tv shows in HD to be played on either device.

This device is firmly targeting the iPod touch with the ability to easily create apps and download content from your Xbox 360 or Zune software on your PC.  A while back Microsoft showed off XNA games running on a Zune.  If Microsoft opens up the XNA Community Games section to be community applications it won't be long till you see the kind of apps running on Android and iPods running on a Zune. 

I had been eyeing up the Android phones but if the new Zune offers those types of features in a sleek new design I will hold off on upgrading my phone.  Both my wife and I have used Zunes of the last couple years with nothing but good experiences.  I think this could be the device that pushes the Zune past the iPod if it can deliver a true HD experience in a portable device. 

Source:
http://www.joystiq.com/2009/05/26/microsoft-unveils-zune-hd-zune-marketplace-headed-to-360/