Today, AppleInsider release a blog post stating that the new Microsoft’s Zune HD will be priced cheaper than iPod Touch. Much cheaper.

For example, 32GB Zune HD will be on sale for $290. More than $100 cheaper than its rival iPod Touch in same capacity.

This is interesting because at this point, Zune HD is one function away for become the rival of iPhone. If Microsoft happen to add SMS & call function in a year or two, iPhone will be in big trouble.

Here is the video from the guy at CrunchGear. Although this is not a final Zune HD product, but it already look good. At least for a Microsoft product.