We've been hearing rumors Microsoft was preparing to reveal a new handheld, possibly Zune-based, device and now it's official: the Zune HD is real. Engadget has the first details on the Zune HD, which not-so-surprisingly takes some major cues from the iPhone and will feature a completely touch-based interface and a built-in web browser, this time based on the company's own Internet Explorer software.
There's little known about Zune HD's hardware specifications, except that it's 3.3-inches, features a 480 x 272 OLED capacitive touchscreen display, and contains both a built-in HD Radio receiver and HD output. Perhaps most surprising, however, is how Zune HD will integrate with Xbox 360 and its Xbox Live services.
Mum's the word for the moment -- Microsoft promises details at E3 -- but the company says the currently far more robust Zune Marketplace will be replace the video marketplace currently featured on Xbox Live. While Microsoft isn't saying so yet, this certainly opens the possibility for music purchase via Xbox Live.