Microsoft Corp launched a slimmer, revamped version of its Zune handheld music and video player as the software giant makes its latest attempt to compete with Apple Inc’s ubiquitous iPod.

The touch-screen Zune HD, which features a radio receiver and wi-fi, is priced just below Apple’s comparable iPod Touch in the hopes of grabbing market share as the U.S. holiday shopping season nears. The device, which goes on sale on Tuesday, has a claim of technical superiority over Apple’s iPods, with a state-of-the-art organic light emitting diode screen and ability to relay high definition video to a television. But it will struggle to make an impact on the stylish iPod, which took the digital music player mainstream when launched in 2001 and now controls more than 70 percent of the market.

Customized red, green and blue colors are also available. Unlike the new ipod the zune does not have an in build camera.

The Zune HD looks sleeker and more innovative. No more of that big button using up space, it now is encased in a fine looking box which simply looks better than before; perhaps Microsoft learned a little from Apple successful iPods (as with everything else) and decided that looks are truly important.

Some cool features in the new Zune HD:
- Included in the Xbox Live Marketplace, providing film and Television features straight to the Microsoft Music player.
- OLED Touchscreen finally brings flipping through music, movie and additional content easily.
- 16:9 Widescreen display with 480×272 Resolution.
- Internet Browser with touch usability
- WiFi instant streaming of music