Microsoft announced the Zune HD, an upgrade to their existing portable media player line which features a Wi-Fi, HD radio, a touch screen and multi-touch Web browser. While its specs aren't exactly on par with those of Apple's iPhone (which some think may be changing the portable gaming market), the new touch screen might mean that games on Zune could happen sooner than we think.

Does it play games, though?

Of course, rumors about Microsoft creating a portable game system have been floating around for years, but obviously all that speculation hasn't produced any actual products.

That said, we do know that the Zune Marketplace (Microsoft's music, TV show and movie store) will be included in the Xbox Live Marketplace, bringing digital content from the Zune service to international consumers through the Xbox 360 console -- previously only North American Zune users could use the store. Microsoft is expected to reveal more about how the Zune and Xbox will be integrated at next week's Electronic Entertainment Expo in Los Angeles -- the press release promises a "game-changing entertainment experience," a subtle but interesting choice of words that will keep us awake at night in anticipation. Just kidding, kind of.

Your turn: What are your thoughts on the Zune announcement? Will the Zune be able to eventually play games like the iPhone?