to an interview with Neowin.net, Microsoft's Zune might hit retail with a US $249 price tag for the 16GB model. The interview also reveals that in addition to the 16GB and 32GB models larger 64GB is also possible at a later date. It also revealed that Zune Marketplace might get 720p movies as well. Thanks to Nvidia's Tegra chip, Zune can play these over its HDMI output.
The interview does mention that prices aren't final yet and that the base 16GB model might cost between US $249 and $279, but we are quite sure that Microsoft should go with the lower one due to the fact that Apple will probably react to Zune HD by lowering the price of its iPod Touch 16GB model which currently retails at around US $299.
Microsoft's Zune HD can easily justify its higher price due to the Tegra chip and multi-touch OLED screen that should deliver more accurate colors.
The interview also mentions that Microsoft's Zune Marketplace will add 720p movies, something that Apple has for some time. On the other hand, unlike iPod, Zune HD has a means of playing these movies, all thanks to that little green chip called Tegra. The interview doesn't mention anything about the precise date of the release as the official stand is still early September so the rumored 5th of September is still just rumor.
Zune HD rumoured to launch September 8th