In terms of popularity, the Zune cannot compare to Apple's iPhone and iPod Touch.  But Microsoft's media player still enjoys a significant following, and the manufacturer's recent announcement has caused quite a stir.

The Zune HD was revealed just this week, and it seems Microsoft is really making an effort to appease Zune users by offering a few extra features -- including the ever popular touchscreen.  Granted, Apple is still leading the market with the products, but this is definitely reassuring news, especially with naysayers predicting Microsoft would drop Zune support due to its less than astounding track record. 

Now Microsoft will be extending the device's Xbox 360 capabilities.  Xbox 360 owners who also have a Zune HD can soon connect to Xbox LIVE Video Marketplace to download and stream videos.

"Zune will occupy the first slot within the Xbox user interface in the Xbox LIVE Video Marketplace, exposing the Zune brand experience to millions of new consumers for the first time," read a Microsoft press release.

With the Zune HD, users will also notice some other key improvements:

• touchscreen - Get quick and instant access to your content with multi-touch navigation. With a 3.3 inch screen and vivid 16:9 OLED display (480x272 resolution), premium entertainment is at your fingertips.
   
• HD Radio - Tune into all your favorite stations with crystal clear reception. With an integrated HD Radio receiver, you can access a variety of HD Radio stations at no additional cost. Plus, tag the songs you like for later purchase.
   
• HD video out - Watch supported 720p HD movies, TV shows and videos in high definition on your HDTV through the Zune HD & AV Dock (sold separately). Or take them with you for premium entertainment on the go.
   
• wireless - Connect, update, and buy content wirelessly from Wi-Fi hot spots. Stream millions of songs over Wi-Fi directly to your Zune HD and turn it into a portable digital jukebox.
   
• web browser - Surf the web anytime, anywhere you have a Wi-Fi connection. Enjoy your favorite websites with a full-featured web browser including tap to zoom technology, built-in accelerometer, and touchscreen QWERTY keyboard.

The device is set to debut in North America this fall, though no plans for PAL regions have yet been announced.  It's entirely possible that Microsoft is simply waiting to see how well the Zune HD performs domestically before making a global leap.  Either way, more details will be announced at next week's E3.