After weeks of speculation and buzz, Microsoft has finally spilled the beans on the Zune HD. Today, Microsoft revealed early details on the new hardware and discussed plans to integrate the product with its wildly popular gaming platform, Xbox 360. According to today's announcement, the Zune HD, which will launch this fall, will feature an operating system based on Windows CE infrastructure, an organic light-emitting diode (OLED) touch screen display, high-definition video support and output via external dock, and a digital radio tuner. Details about the device's data capacity and pricing were not revealed, instead, a considerable emphasis was placed on the forthcoming device's integration with the Xbox 360 and Xbox Live Marketplace service.
Xbox integration enough to get you to ditch you touch for a copy cat device?
Source
Zune HD official Site