Microsoft's Zune HD, which went on sale Tuesday, is proving to be more than just another portable media player trying to unseat Apple's iPod.
The Zune HD is part of Microsoft's new cross-platform media strategy, which focuses on the four screens that consumers watch: TV, portable devices, PCs and the Internet.
Previously with the Zune, we had just been in the MP3 business, but now we have a broader entertainment strategy, said Terry Farrell, senior project manager for the Zune.
Earlier versions of the three-year-old Zune line synched only with a PC, but the new version also works with Xbox and high definition televisions, and will eventually be able to link up with Windows Mobile phones in the coming months.
With he new Zune, users can download a movie on Xbox Live, pause it mid-stream, sync wirelessly to the Zune and resume watching it on the go.
The Zune video store will be available to 20 million Xbox Live subscribers in November.