According to reports, come September 8 there will be a 16GB model selling for $220 and a 32GB model priced at $290 – color options appear to be black and silver. This puts the Zune HD well under the price tag of an iPod touch which rings in significantly higher at $299 and $399 for those sizes.
But Microsoft may not have the upper hand for long since Apple typically announces changes to its iPod lineup in the fall. The Cupertino-based company could drop the price of its touch screen media player around the time Microsoft’s device launches, or perhaps maintain it with hopes that the rumored microphone and camera on an upcoming model will make up for the difference. We’ll just have to wait and see – for now you can watch a short video showing the Zune HD’s interface and media playback after the break.