Microsoft plans to launching Zune HD:-

Microsoft plans to release a new version of its portable Zune music player later this year featuring a touch screen, Web browser, Wi-Fi connectivity and high-definition radio receiver.

The Redmond, Washington-based software giant said late Tuesday that the Zune HD, Microsoft’s rival to the hot-selling Apple iPod, would be available in the United States before the end of the year.

It did not say how much it would cost.

Microsoft said the device would feature high-definition video output capability which would allow it to play HD quality video on HD televisions using a docking station.

Microsoft also said it was integrating the Zune with its Xbox Live video offerings “bringing an exciting catalog of TV and film to the platform.”

“This marks an important development in the Zune strategy and brings the Zune brand to more than 17 million international Xbox Live subscribers,” Microsoft said.

It said the integration of Zune and Xbox Live would be demonstrated at next week’s Electronic Entertainment Expo (E3) in Los Angeles.