Zune HD Priced Cheaper Than the iPod Touch

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Zune HD, Microsoft’s answer to Apple iPod Touch, is likely to launch in less than a month and it promises to be much cheaper than its rival.

Amazon, which has started taking pre-orders for the device, has listed the 16 GB Zune HD player for $220 and the 32 GB version for $290. Compare that to $275  for the 16 GB iPod Touch and $370 for the 32 GB version. Microsoft is yet to confirm the pricing for Zune HD or the launch date.

Microsoft’s move will give Zune a real shot at catching up to its competitor. Since its launch in 2006, Zune has been struggling to make a dent in the iPod’s massive market share. According to research firm NPD, in the first half of the year Zune’s market share was about 2 percent compared to about 70 percent for the iPod.

But, clearly, Microsoft hasn’t given up on this battle. In May, the company announced a new version of the Zune media player called Zune HD. Zune HD has a 3.3-inch capacitive OLED screen with multi-touch functionality, Wi-Fi, HD radio and an internet browser. The device will also have HD video output capability.

We got some hands on time with the device last week and our first impressions have been good. Zune HD’s crisp OLED screen and easy multi-touch interface has the potential to turn the player into a viable competitor to the iPod Touch.

Add to this the competitive pricing vs. the Touch, and it is likely to be Zune’s best chance for a comeback.

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Photo: Dylan Tweney / Wired.com


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