That's a good step, but I still don't think the offering is competitive. Wal-Mart sells the clunky PVP-200 for $94.86 online with 128MB memory, yet for less than four dollars more it offers the sleek Creative Zen V 1GB portable video player with 8x the memory and an OLED display.
This holiday season will likely be remembered as a critical lost opportunity for ZVUE. It offered too little, too late, and has now positioned itself squarely as a third-tier hardware manufacturer coupled with third-tier non-proprietary content. If I ran HandHeld, I would try to raise more cash before the YouTube comparisons fade from investor's memories, and the reality of Christmas sales results set in.
Disclosure: Author has no position in ZVUE