Zune HD coming. Microsoft to offer music, movie and TV downloads on Xbox 360 with Zune Marketplace replacing Live video marketplace?

27 May 2009

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Posted by:Josh

HUGE NEWS just broke regarding the Zune HD, the follow-up to the Zune music player by Microsoft that will reportedly be announced and shown in full detail at E3 2009 that takes place June 2nd to the 4th.

But the biggest news for gamers (outside of the Zune HD getting a touch-screen, therefore putting it head-to-head in the battle with the iPhone for your gaming/App dollars) is the fact that Microsoft would replace the Xbox Live video marketplace with the Zune marketplace, music in all!

To make this deal even sweeter, The Guardian is reporting that in addition to carrying over all the music, movie and TV show/video content that is offered on the Zune Marketplace to Xbox 360, Microsoft would also offer gamers the same flat-fee subscription service (allowing you to download anything as much as you want for a subscription fee)!

If all of this is true, this would be a HUGE boon for Microsoft in its continuing battle with Sony; Who is rumored to be on a quest of their own to offer music downloads on PSP. Thus Microsoft would beat them to the punch WITH a humongous library of music, movies, TV shows and video downloads available from day one!

In addition, this could even be a giant step in Microsoft’s music handheld device battle with Apple and their iPhone/iPod/iTunes service. If true, gamers and people of all stripes may have another incentive to consider when downloading music. They can do so directly from their Xbox 360. And although that may not seem like such a big deal, if they are a big gamer or on their 360 a lot, it may simply be another factor to consider when downloading music. Downloading it on the console where they spend a lot of their time, and then from there to their Zune. Instead of the other way around (iPod/iPhone to the Xbox 360).

That is, of course, if Microsoft makes the two backwards compatible (Xbox 360 to Zune), if not this would all be for not.

Either way, if all this turns out to be true and on-base, then the entirety of the E3 2009 show just got a heck of a lot more interesting. And not only that but I now CAN’T wait to hear Microsoft’s press conference because all this Zune HD news would be a MAJOR game changer.

Just one more week to wait!

Via Joystiq