Zune HD undercuts iPod

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Microsoft has revealed that its new Zune media player will cost less than the equivalent Apple iPod when it goes on sale in the US, as it tries to gain some market share against its rival.

The new Zune HD won’t hit retail shelves until 15 September and will cost $219.99 for the 16GB version and $289.99 for the 32GB version. Comparable iPod Touch players are priced at $299 and $399 respectively. A 16-gigabyte player typically holds about 4,000 songs.

Microsoft's new Zune HD is slimmer than previous version and has a touch screen for the first time. The range comes in five colours and has a built-in radio receiver, Wi-Fi, and can display high-definition video on a big screen.

However, there’s still no sign of the device arriving on UK shores, which was originally released in the US in late 2006. Rumours that Microsoft would release an iPhone rival based on the Zune, rather than its much maligned Windows Mobile have so far come to nought.

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