The new Zune HD, Microsoft’s answer to the Apple iPod may comes in sizes 16 and 32GB… maybe even 64GB!

The Zune HD’s launch has been confirmed by Microsoft, but rumors from reliable quarters (a Microsoft engineer) claim that the models will come in 16 and 32GB capacities and that a 64GB model is planned for a year-end launch.

Microsoft has already confirmed many of the features including the one where it is powered by an Nvidia Tegra chip.

It will be have an OLED (Organic Light Emitting Diode) 16:9 display touchscreen with a resolution of 120 x 272 pixels and multi-touch, a customized Windows Internet Explorer browser, Wi-Fi connectivity, an applications store and HD support (HD Radio).

The HD support here must not be confused with high-definition TV or video but HD radio and HD support for outputting videos to TVs over HDMI (High-Definition Multimedia Interface).

There are others who claim that the new Zune will have HD video support and that Microsoft is licensing movies from major studios for this purpose.

The portable media player is expected to cost between USD $250 or $280 (Rs. 12,000-Rs. 13,500).