Engadget got a peek at what is likely the new ZuneHD. So how will this thing compete with the iPod touch? We’re assuming it will be cheaper than the iPod touch, it will likely have a higher pixel count. It looks more 16:9ish than the iPod’s 3:2 ratio.
The Zune, for what it is worth, will have a billion fewer apps sold at release than the iPod touch.
This is becoming frighteningly close to the ZunePhone FailWhale that we all fear.