ZiiLABS, a subsidiary of Creative, has introduced what it claims is the world's first 1080p Blu-ray quality handheld media processor. Called the ZMS-08, ZiiLABS' new system-on-a-chip features full H.264HD 1080p playback, 24fps encoding, HD video conferencing, OpenGL ES 2.0 support, an integrated HDMI controller, X-Fi audio and Flash acceleration. With 1080p playback at up to 40Mb/s and the incorporated HDMI controller users could play Blu-ray quality video directly on an HDTV.

The ZMS-08 packs a 1GHz ARM Cortex-A8 with 256K L2 cache, NEON TrustZone security technology, and can address up to 1GB of MDDR or DDR2 333MHz RAM. The chip is aimed at small form factor devices such as tablets, netbooks, connected TVs, and video conferencing systems -- a segment currently being chased by Intel and Nvidia.

I haven't seen a price, so I'm not sure where the ZMS-08 will sit among its competitors, but the chip is currently being sampled by customers and mass shipment is planned for the first quarter of next year.