Zune HD On Sale Now

Microsoft on Thursday officially made its forthcoming Zune HD digital music player available for purchase through a pre-sale program. The software maker is counting on the latest Zune model, which ships to customers Sept. 15, to boost its flagging fortunes in the MP3 player market.

Both the 16GB black version and the 32GB platinum model Zune HDs can be ordered from Microsoft's Zune site or from retailers such as Amazon.com, Best Buy, and Wal-Mart. The 16GB device is priced at $219, while its larger cousin goes for $289.

Zune HD is the first Zune model to feature a touch-screen interface similar to that found on Apple's iPhone. It also offers a built-in HD Radio receiver, 720p HD video output capabilities, a Wi-Fi antenna, and a Web browser. Zune HD uses Nvidia's Tegra chip, an ultralow-power HD processor, to achieve high-definition output.

"Combined with unparalleled PC software and online services such as Zune Pass, Zune provides a rich and meaningful connection to music, videos, podcasts, and more," Microsoft said in a statement.

Microsoft needs Zune HD to be a hit, as the company has become all but an afterthought in a mobile entertainment market dominated by Apple's iPhone and iPod devices. Revenue from the company's Entertainment and Devices Division, which houses Zune, fell 25% year-over-year in the most recent quarter—to $1.2 billion.

Zune sales were particularly hard hit. Microsoft's EDD unit saw non-gaming sales, mostly Zune, plummet 42%.

Microsoft shares were off .25%, to $23.47, in early trading Thursday as investors weighted the impact of a judge's ban on Microsoft Word sales.