ZuneHD to take on iPod touch

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 tablet space is hot lately with the Amazon Kindle rumored to be getting a bigger screen and the Crunkpad coming out soon.

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.

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