Microsoft has confirmed the rumours and announced a new Zune MP3 player in America called the Zune HD.

The new player, which will only be available in the US for the time being, will come with a 16:9 widescreen format OLED touchscreen display and will offer a resolution of 480 x 272. However, users will be able to ouput HD content (720p) to an HD-Ready TV via an optional dock that ships with an HDMI connection.

Also new, the Zune HD will feature a built-in HD radio receiver (the US equivalent of DAB) and will be Wi-Fi enabled, however Microsoft has failed to give details about storage sizes or other features of the new player.

Taking advantage of the Wi-Fi connectivity, the music box will offer a "full screen internet browser optimized for multitouch functionality", and the ability to stream to the device from the more than 5 million-track Zune music store.

Microsoft hasn't said however whether users will be able to stream from their own collection from a Windows 7 PC, a feature that is currently only limited to Windows 7 to Windows 7 running computers.

Microsoft has said the new player will be available in the autumn. It has yet to set a price or a UK launch date.

Europeans however don't miss out completely: the company has announced that it will be bringing the Zune service to Europe as an entertainment brand via Xbox LIVE.