Zune HD: Trying to Compete with Yesterday's iPod Touch

Microsoft (MSFT) is looking to go head-to-head with Apple’s iPod Touch by introducing the Zune HD, a touch-screen multimedia player that will be capable of playing high definition movies, high definition radio and surfing the Web via a mobile version of Internet Explorer.

Once again, when it comes to challenging Apple (AAPL), Microsoft is a day late and a dollar short on this front. For some time now, we’ve been talking about the iPod Touch as less of a music and video player but more of a handheld computer - capable of doing pretty much anything a PC can do by way of the apps. And already there’s buzz that Apple will introduce an upgraded iPod Touch - something with a larger screen and more like a Tablet PC - at its worldwide developer’s conference next month.

Microsoft did not announce pricing or capacity but told CNET’s Ina Fried in an interview that the device will use flash memory. Interestingly enough, the company also told CNET that it will announce details of a new Zune-branded video service for the Xbox at next week’s E3 conference.

That service will replace the current service but the company did not say specifically that the content will be play back on both the Zune and Xbox, CNET reported. Mary Jo Foley, however, reports on ZDNet’s All About Microsoft blog that the new Zunes will be connected to the Xbox via the video service.

Apple, of course, already offers both movies and TV shows in standard definition and high definition for rent or purchase. The programming is compatible with PCs, Macs, iPods and AppleTV.

It’s also unclear what, if anything, Microsoft will be doing to incorporate games into the ZuneHD. The company isn’t giving any hints ahead of the E3 show next week. It did say, however, that it’s not building a ZunePhone, though it does have long-term plans (at least a year or more) to offer Zune service on phones.

Hmmm. I wonder if there will be an iPhone app for that.

Comments

[pats:]

Just a clarification. HD radio does not stand for high definition. It is a standard for simulcast of both digital and analog signal, the quality can approach CD quality if the FM station is not multiplexing the data stream.

May 27 01:14 PM

[Cheat Sheet:]

Radio was a main "iPod-Killer" feature. I guess HD Radio is the 2.0 version of that strategy.

May 27 01:44 PM

[Its Me:]

Point made above..."we’ve been talking about the iPod Touch as less of a music and video player but more of a handheld computer...."
The Zune device was never meant to be a handheld PC...it is a music player, it is an entertainment device, the whole Zune experience is meant for music, video entertainment....The Marketplace has a wealth of entertainment and unlimited music downloads for $14.99 per month.

May 27 04:09 PM

[davesmall:]

So the advantage Zune is going to have is that they'll be able to offer FM Radio broadcasts with commercials.

How is that an advantage?

May 27 09:25 PM

[brewer:]

Don't forget the other 'advantage'... you can run Internet 'Exploiter'.

This will be an abject failure. I think Windows 7 will be, too.

How long can MSFT continue to flush money before the brown Zune hits the fan?

May 28 09:41 AM

[brewer:]

Apple has a new promotion as of yesterday. Buy a Mac, get an iPod touch free. This is a great deal, and it portends a new iPod touch or tablet coming soon. They did this last year with the original iPod touch before the second gen came out.

May 28 09:53 AM

[mollytjm:]

good article. i do think the Mac/ipod touch deal is to make room for the newones!
Zune... wake me when it's over. they should have just called it ZZZZZ. Microsoft just can't innovate quickly so it really doesn't matter what they announce, it'll take Apple about a minute to better it, if they haven't already (which is most likely). And i think Apple will still pass on brown:).

May 28 10:48 AM