Creative has launched the Zii Egg player, and we must admit that the product has every chance to put some more expensive devices to shame as Creative seems to have done a really good job.

The Zii Egg has a 3.5’’ multi-gesture touch display with 320x480 resolution, comes with up to 32GB internal memory and up to 32GB expansion via SDHC Card slot and should support all the popular video and audio formats. What’s particularly impressive is the fact that the Zii Egg is capable of 1080p via HD cable, which is impressive for such a device and it even comes with X-Fi audio chip, making this a miniature multimedia giant.

It comes with a built-in 3-axis accelerometer, Bluetooth 2.1 + EDR, WiFi 802.11b/g, GPS receiver, 256MB of Mobile DDR RAM and 32MB of NOR. There are two cameras in total on this device – an HD camera on the front and a VGA camera on the rear.

The Zii Egg measures 115 x 62 x 12mm and weighs in at 108 grams, and comes with a 1200mAH lithium-ion battery. What’s particularly great is that the device should cost only $199, which if true could make it sell like hotcakes. There are rumors that we’ll see an even more consumer oriented version called simply the Zii, but more on that when it’s actually confirmed.

Additionally, Creative equipped this device with its new SDK named Plaszma, and the kit contains an open-source OS with C++ support, the ZMS-05 chip and a version of Android optimized for the Zii chip. Despite some pretty rave reactions, we’ll still wait to test one of these before we say anything with certainty, but for now this device looks like a winner.

You can find more pictures and a video of this device in action here.