Microsoft, without doubt, is prepping Zune HD (the next generation of Zune) to compete with Apple's iPod Touch portable media player. And some leaded images of Microsoft's Zune HD were showed on engadget.com several days ago.

According to the leaked pictures, Microsoft's new portable media player is set to go neck-to-neck with Apple's iPod Touch, as the specifications of the Zune HD make it a viable contender. So what’ll be Microsoft Zune HD look like?
Some confirmed features of Zune HDLarge wide screen and Multi-touch supportThe new Zune HD will have a 3.6-inch OLED touch screen with capacitive multi-touch support. According to Technologizer, Zune HD will use Nvidia's Tegra chipset. Hopefully, Zune HD's Tegra chip would be faster than Apple's Second Generation iPod Touch's ARM11-based S5L8720x chip clocked at 532MHz.
Assemble With HDMI and HD RadioMicrosoft's Zune HD will have a HDMI out for streaming content directly to the television. Also, Zune HD has HD Radio, which is not a built-in feature in Apple's iPod Touch but available through Apps from App Store.
Wireless supportIt speculates that the Zune HD will support wireless syncing to your computer, this PMP would also be WiFi compatible and capable of Wireless Sync with Windows Marketplace.
The storage capacity of Zune Touch HDIt’s reported that 4GB, 8GB, 16GB and 32GBversions will be available.
Unconfirmed rumors about Zune HD
The Microsoft Zune HD Release DateAccording to some Technologizers, the Zune HD is set to launch this fall (probably September) with new details of international availability in Canada, the U.K, and France. But it still not confirmed by Microsoft spokesperson.
Support 3D Xbox games?Some even speculate the PMP will support 3D Xbox games, if the Zune Touch HD will actually use Nvidia's Tegra chipset.
Windows Mobile 7 included?The new details also mention a Web browser on the Zune HD, which in turn supports multitouch. No word on what kind of browser this will be, it seems like it will be a showcase for Windows Mobile 7 since rumor mills have been buzzing about Zune's integration with the Windows Mobile 7.
Good stuff, huh?Be sure to keep it right here, for all the latest Zune news and third part APPs for Zune HD. And
Wondershare Zune Converter will upgrade to support Zune HD while Microsoft Zune HD releases.