http://www.engadget.com/2009/05/26/zune-hd-is-official-heading-your-way-this-fall/ 
That's right folks, the Zune HD is real, and it's coming this Fall. Microsoft officially announced the next iteration in their Zune line today, making it less of a tripped out pipe dream, and more of a totally tubular reality. The specs, which look exactly like that leak we saw, go like this: 3.3-inch, 480 x 272 OLED capacitive touchscreen display, built-in HD Radio receiver, HD output (utilizing a new dock -- not on-board), and... not much more right now. Microsoft is doing away with the famed squircle in favor a full multitouch device, and they seemed to indicate that some new touch-friendly apps and games would be headed our way, though they were fairly mum when it came to details. The device will boast an IE-based, customized browser, but little else was said in the way of software.
Details are also scarce concerning storage capacities, CPU performance, and other crucial numbers, but it seems like they've got more in store come E3... and that's the next big piece of news. Zune integration is coming to the Xbox and Xbox Live, as the Zune marketplace will step in to replace the current Live video resources, expanding the library and offering all kinds of new perks, like Zune's first foray into international waters. According to the company, at E3 "attendees will see first-hand how Zune integrates into Xbox LIVE creating a game-changing entertainment experience" -- we're not entirely sure what the means right now, but it sounds sweet. Try to contain your excitement.
update: teaser site http://www.zune.net/en-us/mp3players/zunehd/default.htm
Next Gen 
