Microsoft has just announced the release of their new iPod killer, the Zune HD, the follow up to their previous would-be iPod killer, the Zune.

Featuring a 3.3” OLED touch-screen the Zune HD does not only look like a stunning device, but seems to have an ace up it sleeve with not only Wi-Fi connectivity (as per the previous version) but also a web browser.

Also included is HD Radio for services offered in the US, as well as HD video out. This comes in the form of a HDMI A/V dock (sold separately) to play videos on your HDTV of up to 720p resolution. Seems like all Microsoft needs to do now is stick a SIM in there and voila- the iZune.

There is no news yet on whether the Zune HD will be released in SA, but we can certainly brace ourselves for the bad news, seeing as the original Zune never made it to our shores.