That's right kids -- Ballmer himself whipped out the newly minted Zune HD for us during D7 and showed off a few of its finer features... including its ability to play a Pixar movie on its gorgeous OLED screen. Also of note, Steve off-handedly mentioned that the device would be shipping in a month, though we can't confirm that that's accurate. Anyhow, these pictures say far more than a thousand words, so just hit the gallery.

Update: Microsoft just pinged to let us know that the Zune HD is still set for a Fall release, not next month.

A few quick impressions we took away:
  • The device was a pre-production model, and Steve had to boot it up -- which can be seen in the shots below.
  • Hardware was surprisingly thin.
  • There's what appears to be a solitary hard button below the screen.
  • Interface was basically the same Zune UI with touch navigation, but very colorful and pretty snappy.
  • The OLED screen looked great.
  • We'll obviously be badgering Microsoft in the coming months for a longer, closer look at the device, but at least it's not just a render anymore.
Gallery | 22 Photos

Steve Ballmer demos the Zune HD for Engadget

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Exclusive: Steve Ballmer demos the Zune HD for Engadget!