Microsoft has finally confirmed the Zune HD rumors that have been floating around and have given a little more information as well.
The Zune HD will feature a 3.3" 480x272 OLED touchscreen, built-in HD radio, HDMI output via a dock, Wi-Fi, and a browser. The Zune service will also be also be integrated Xbox LIVE and Microsoft plans on demonstrating this at the Electronic Entertainment Expo next week.
While the Zune HD will only display at 480x272, it is capable of outputting at 720P via HDMI through the AV dock. The Wi-Fi connectivity will allow for instant streaming to the Zune HD from the Zune store
As of now it is known that the Zune HD will be available in silver and black, howver there aren't any details on specs such as storage and CPU. As Microsoft will be demoing the device at E3 next week, expect more on this information then.