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According to a couple of “leaked” rumors (you just know it’s Microsoft wanting to gauge the reception of the prices before announcing them) the Zune HD is going to be considerably cheaper than the iPod Touch. The 16GB version will come in at $220, $79 cheaper than a same size iPod. $290 is what you’ll need for a 32GB Zune, while a 32GB iPod Touch would set you back $400.

They both have pretty much the same features just now, tho it’s not clear whether the Zune will do “apps” as well as music/video, but normally Apple refreshes the iPod line in September so by the time the Zune actually comes out there could be a very different picture.

I hope Microsoft does well with the Zune HD, no really I do. It’s also had a good interface and software on the devices, it’s just the devices have been kinda fugly till now. Also, the more competition Apple sees from Microsoft, the more they will continue to push themselves.

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Tomorrow marks the beginning of WWDC, the developers conference held in SF for Apple lovers the world over.

On Monday Apple themselves kick off the shenanigans with a keynote that is traditionally used to show off new tech; specifically this year it will be iPhone OS 3.0 and Snow Leopard. There’s also the usual rumors about a new iPhone and while there’s always a slim chance they won’t, I see Apple unveiling the new version tomorrow.

Whether it’ll be anything more than a storage bump (32GB models are all but confirmed) remains to be seen tho. There’s talk of video chat via a front side camera, different models like the iPod/iPod Nano.

I don’t think we’ll know for sure until after the Apple Keynote and I for one can’t wait to see what they have in store.

If this is real (and it most likely is) then Microsoft might finally have done something right with the Zune line. But it’s still gonna take something special to put it in league with the iPod Touch especially since the Touch has gaming capabilities which it doesn’t look like the Zune will have.