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I never have been a big follower of the development for the Zune HD, but since discovering this video, i realise that Microsoft might have a serious product to compete with the PSP and the iPod Touch in the gaming arena here.

Its got better graphics and touted to have better sound quality (not hard to beat, Apple have some really bad sound chips) But the screen size is so small! I wonder how you are gonna enjoy it without speakers as well.

I think this might be an infant step but get more developers on board Microsoft. Then we can start talking