The Zune HD has arrived, and Microsoft is planning to step out of the iPod's shadow.

Just days after the Apple conference where the new iPod's where revealed, Microsoft has answered the challenge by putting out the latest generation of their Zune portable media player. The Zune HD includes a number of new features that are sure to make it a compelling choice for many consumers this holiday season.

The Zune HD includes an HD radio receiver and has a HD video output making it easy to connect your Zune player to a HD TV and play your media files in 720p resolution. Microsoft is also strengthening the integration with their Xbox Live service, and truly establishing the Zune as a portable media center. This Fall, the Zune and Xbox Live video services will be merged together, something that will surely be a welcome upgrade for millions of Xbox Live subscribers.

The HD radio tuner let's users listen to high quality radio, but more importantly, songs you hear on your radio and like can be tagged for downloading later, or using the built in WiFi, you can download music you like on the fly. This feature alone should be a great incentive for music enthusiasts to give the Zune HD serious consideration.

The Zune HD also has an upgraded multi touch 3.3 inch widescreen OLED screen that looks amazing. The Zune is throwing down the gauntlet for the iPod to pick up, and it will be very interesting to see how Apple respond to these significant upgrades form Microsoft. With the improved visuals, and a new version of the Zune software, the Zune is also looking to line up as a competitor to the Nintendo DS and the PSP.

The Zune HD will is available in stores in a black 16 GB, or Platinum 32 GB versions. More interestingly, on Zune Originals online, you can customize your Zune player by adding customized text or custom designs laser cut into the case. Zune Originals are also available in colors not currently available in stores. The 16 GB player will retail at $219.99, while the 32 GB model will set you back $289.99.

With a slew of new features, a new web browser included, a much improved screen and a sleek new look. The Zune HD is looking to take some serious market shares from the iPod. With the somewhat lackluster iPod upgrades announced this year, the Zune might finally be a real alternative for shoppers looking for handheld media players.