Microsoft's Zune HD is an iPod killer

NEW YORK (CNNMoney.com) -- Microsoft's Zune HD, which went on sale Tuesday, is more than just another portable media player trying to unseat Apple's iPod.
It's part of Microsoft's new cross-platform media strategy, which focuses on the four screens that consumers watch: TV, portable devices, PCs and the Internet.
Earlier versions of the three-year-old Zune line synched only with a PC, but the new version also works with Xbox and high definition televisions, and will eventually be able to link up with Windows Mobile phones in the coming months.
"Previously with the Zune, we had just been in the MP3 business, but now we have a broader entertainment strategy," said Terry Farrell, senior project manager for the Zune. The new Zune allows a user to download a movie on Xbox Live, pause it mid-stream, sync wirelessly to the Zune and resume watching it on the go. And if the movie still isn't over, users can sync up with their PC's to watch the rest. (The Zune video store will be available to 20 million Xbox Live subscribers in November.)
The synergies don't end there. All movies will be available in 720p HD, so watching them on a high-def TV using the Zune dock connector makes the picture look as sharp as watching a Blu-ray DVD. Beyond movies, Microsoft plans to expand its app store, called Zune Marketplace, beyond the dozen or so apps it currently offers. The company's Xbox gaming unit is already working on original games and once the Zune is synched up with Windows Mobile, Microsoft said it will seek out third-party app vendors.