Microsoft Corp has released the new Zune HD portable media player that, as the industry says is here to compete against Apple’s iPod.

The new Zune HD would be available in two main versions; 16 gigabyte and 32 gigabyte. It comprises of:

• Sleek & slim look
• 3.3” OLED touch-screen with a QWERTY keyboard, for the first time
• Built-in Wi-Fi and radio receiver, turns into a portable digital jukebox
• Can store and play back video content in high definition at 720p
• Can be connected to a TV set using a special dock
• Has been designed to synchronize with Microsoft’s games console Xbox 360
• Built-in accelerometer

The new range comes in five colour variants.

The 16 GB device has been priced at $219.99 and the 32 GB values $289.99, which is comparatively low against iPod Touch players.