TeamXbox has posted a story about the Zune HD, written this past January, using information going back to August 2008. The lengthy piece makes the Zune HD sound like an integration marvel -- something we're not exactly used to seeing from Redmond.
The Zune HD will allegedly be "a portable game console and media player," with the ability to link Microsoft's Skybox and integrate the current Zune and Xbox marketplaces. Something similar to the NXE will apparently function as the interface on the handheld. Zune HD will also allow users to play Xbox Live Arcade games either on their Xbox or on the handheld.
It all sounds so magical, Toto. When can we go to OZ?