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Zune HD is the latest player in the Zune device family, available in 16GB and 32GB capacities and is the first touch screen Zune with HD functionality and powerful technology to give consumers a different way to experience music and video on-the-go.

• HD Radio –Zune HD comes with a built-in FM HD Radio receiver enabling users to tune to more free stations with even better clarity and sound quality.
• HD Video Out – Connect your Zune HD to the optional Zune Premium A/V docking station and watch HD videos, TV shows and movies in your large screen TV in 720p high definition
• Internet Browser and Wi-Fi - Zune HD includes a full-screen Internet browser optimized for multi-touch and Wi-Fi connectivity

Zune Software

• QuickPlay – A whole new user interface that offers one-click access to your favorites, and recent activity on both the PC and your Zune HD
• Smart DJ -  With one click, Zune becomes your personal DJ, creating and serving you an endless playlist based on the genre, style and influences of the song or artist you choose

Zune Services (Zune Marketplace and Zune.net)

• For the first time, Zune Marketplace is offering full-length movies in HD and SD format for download and rental; download HD TV shows and movies and watch them on your Zune or PC.  Or with the optional A/V docking station, watch them in high definition on your HDTV
• Zune.net Streaming - With a Zune Pass, stream music directly from Zune.net from any internet-connected computer.  No client software download needed
• Zune Pass - Access nearly 6 million songs for only $14.99 a month and keep 10 free MP3 downloads each month 
• Zune Pass + SmartDJ - If you have a Zune Pass you can use SmartDJ to stream an endless playlist from the nearly 6 million song Zune catalog from any internet connected PC via Zune.net, no download required

Expansion into Xbox

• Later this fall, Microsoft will bring the Zune video service to the nearly 20 million Xbox Live users as Zune becomes the video store for Xbox Live
• “Buy Once, Play Anywhere” - Consumers will be able to buy a movie once and watch it on multiple devices:  Xbox 360, Zune device and PC

Pricing

• Zune HD 16GB for $219.99 on Amazon (as of 9/17/09)
• Zune HD 32GB for $289.99 on Amazon (as of 9/17/09)

Zune HD is available in the retail channel on Sept 15, but for the time being the Zune HD device will remain US only.

Learn more: http://www.zune.net/en-us/products/zunehd/default.htm

>> From an interview with Robbie Bach, president of Microsoft's entertainment and devices division, on sfgate.com:
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• Q: It sounds like you are also seeing advertising opportunities with the Xbox. How do you do that without alienating or aggravating your users?
• A: Whether it's a phone or the Xbox or the PC, the ideal goal is to make the ad relevant in a part of the experience, as opposed to something that intrudes on the space. In the game space, one of the things we have found is making ads part of the game. If you're in the car racing game and you're driving around the city, product placement works. There are ads in a city. There are billboards in a city. We can place those and we can actually dynamically rotate ads to those locations.
  We've done some very successful campaigns with big, national brands like Nike, Doritos and Toyota that want to get their brand in front of a very desirable target audience. They want to do it in a way that's relevant. People are sponsoring game development contests. They are sponsoring tournaments. Toyota has done that. Toyota has actually launched products in our games where the car will appear in a game. People can race the car and it's a special car that you get for achieving a certain level in the game. There are really creative ways to get people exposure to these things.
• Q: In January, Warner Bros. announced that it was going to support Blu-ray, the high-definition DVD format. Since then, the rival HD DVD format has gone away. Microsoft supported HD DVD with an Xbox HD DVD attachment. What is your plan there?
• A: Our plan continues to focus on high-definition experiences. Xbox 360 has a great ability to deliver those through the Xbox Live (online download) service. It's a great way to get the high-definition concept because it's right there. There's no additional media. There is nothing you need to purchase.
  If you look at the Blu-ray player market, you haven't seen the acceleration everybody expected (since the demise of HD DVD). It's not as much about whether all the content is in a Blu-ray format or a HD DVD format. You have to look at how fundamentally compelling the difference is between a progressive scan DVD player and the picture that it can produce and what you get on a high-definition player. The reality is there is some difference, but most people look at it and say, "I am not going to pay extra for that."
• Q: So no plans for Blu-ray in the next generation Xbox?
• A: No. There is nothing to even talk about right now with regard to the next generation. That is so far out that there isn't anything to talk about.
• Q: Just the same, we are coming up on a few years now with the Xbox 360. Is there some point when you start to say that we need to start looking at its replacement?
• A: There is no real projection on that. The last generation for the Xbox was a little short because we entered the market a little bit later in the cycle. I suspect this time the cycle will be a little bit longer for us.
  In terms of our actual thinking about that, we started thinking about the next generation before we finished creating the last one. It's a continuous process. We're always thinking about new ideas and new things. We don't have anything specific to talk about. There are so many things going on in the current generation that will keep us more than occupied for the foreseeable future.

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Source: sfgate.com via xbox-scene.com

Here are the highlights:

• "The Xbox 360 community has unlocked over 1 billion achievements," says Schappert
• Over $250 million has been spent online in the Xbox Live Marketplace.
• How popular is Halo 3's saved films feature? Over 1,000 pieces are uploaded by the Halo 3 community every day -- that's 30% more than Youtube, claims Schappert.
• Over 800,000 downloads of the XNA toolset have occurred. It's been adopted by over 400 universities worldwide.
• DreamBuildPlay hoped to spur on creativity, and the results were "incredible." Over 200 games were submitted to the competition.
• Community games will be distributed through Xbox Live. "Xbox Live Community Games" will give creators a huge audience to share their creativity with. Game distribution will be democritized, allowing the community to control the content. Create, Submit, Peer Review, Play are the four key steps."
• Chris announced that Dishwasher, and 6 other community games will be available for you to try FREE on XBL marketplace later today.
• Also announced XNA games are coming to Zune.
• Tim Sweeney & Michael Capps from Epic are on stage showing off the next gen of Unreal Engine
• Over 1,000 games on Xbox 360 by the end of 2008, promises Schappert. And that excludes Xbox Live Community Games
• April 29th bring GTAIV to Xbox 360, "on day one." Starting Fall 2008, GTA DLC will hit Xbox Live Marketplace.
• A new guest on stage -- Team Ninja's Tomonobu Itagaki! He's here to demonstrate Ninja Gaiden 2. June 2008 is the release date.
• Peter Molyneux to show us Fable 2
• Cliffy B just burst through the set w/ Lancer to announce Gears of War 2 coming this November, exclusively on Xbox 360.
• Press Release: Xbox 360 Becomes First Video Game Console Ever to Invite the World to Create Original Games and Share Online With Millions

>> Microsoft's GDC keynote has been live blogged by joystiq.com and major nelson.

The new trailer for Gears of War 2 is now available on Xbox LIVE (only in Australia, Canada, Ireland, New Zealand, UK and US for now). If it's not available in your country yet, you can watch it below in low res:

Also added to Xbox LIVE (everywhere except Australia, Hong Kong, India, Korea, Mexico, New Zealand, Singapore, Taiwan) is the 'XNA Creators Club Game Launcher':

[QUOTE]
The $249 Zune 80 is Microsoft's latest attempt to kick the iPod in the nuts, praying to crack Jobs' titanium-diamond alloy cup through Wi-Fi features and a touch of divine intervention. CNET, Wired, Dean Takahashi, PCWorld and YahooTech struck first with reviews on the new device. Their verdicts? The cup has not yet been breeched, but Microsoft is making very solid improvements on the brand.

PCMag
We'll just come out and say it: The 80GB Zune trumps the iPod Classic...For the same $250 price as the 80GB iPod classic, the new Zune 80GB offers a much larger screen, FM radio, wireless player-to-player sharing, Wi-Fi syncing with your PC, and a rear panel that can be customized with some cool artwork--for free. Simply put, Apple is no longer the leader in the realm of hard drive-based players. While the Zune 80GB and the iPod classic are both outstanding devices, the Zune has more features--and it's more fun.

CNET
The 80GB Zune cuts a much slimmer figure than its bricklike older brother. Measuring 4.3 inches high by 2.4 inches wide by 0.5 inch deep, Microsoft shaved some considerable bulk off the Zune's thickness, while nearly tripling its capacity...we believe the latest crop of Zunes should finally take hold as a true iPod alternative. (83/100)

PCWorld
All of the new Zunes are built around a rounded touch-sensitive control that also doubles as a clickable d-pad-style controler, much like the Click Wheel on Apple's iPods. Flick your thumb up or down the pad repeatedly, and you begin to build up momentum while scrolling through long lists. At any time, you can tap to stop the scrolling, though it will eventually come to stop naturally. In my experience, it's a very fun way to navigate through a music collection, even in a long view of artists on the 80GB player...All in all, the 80GB Zune is a decent choice as an 80GB MP3 player. (no score at this time)

Wired
Video performance is very good, with the screen size really helping...Battery life didn't meet the published specs of 20 hours for music and 4 hours for video with the Wi-Fi turned off. My rundown test on music was 18 hours, and video was 3.5 hours, which is, you know, fine.... Would I recommend the Zune? Yeah, I think I would. If you're not invested in the iPod/iTunes ecosystem, it's the most polished competitor I've used to date. Especially if you're looking for a subscription service, the integration of player and service just crushes everyone else. (6/10)

YahooTech
...the most innovative new feature on the Zune: wireless syncing. Setup was a piece of cake: you just connect the Zune to your PC via USB, fire up the Zune software, and enable wireless syncing under the Settings menu. If your system is already connected to a wireless network, those settings are transferred to the Zune automatically—no need to key in the access point name or password...automatic syncing only works when the Zune is plugged into its charging dock. Overall, I thought wireless syncing worked pretty seamlessly, and I loved being able to sync new songs and playlists over the air (why can't the iPhone or the iPod Touch do this?)

Dean Takahashi
The Zune Marketplace website looks better than iTunes because it feels less like a spreadsheet. It still uses the MTV Urge back-end but is completely redesigned.... All of these things represent improvements that allow Microsoft to claim that it is going its own way. Clearly, they aren't copying Apple...At this rate of improvement, Microsoft will be a contender. But it has a long way to go before it keeps Steve Jobs up at night.

- Zune fans should be happy with the improvements, but even more, that the big new features are software based and free for everyone.
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Source: http://gizmodo.com/