Shane Kim, corporate VP of Microsoft game studios has confirmed that there is a handheld device in the making, that would be somewhere in between the Xbox and Zune platforms. This actually means that Zune HD might not be that device, since it is the Zune platform. When this handheld arrives, people will say it is Microsoft’s response...

fitret, the Program Manager for Xbox 360 posted a new picture of the Zune HD, a few days ago on Twitter. The image shows Zune Marketplace. As expected it matches the rest of the UI. All fitret says about the Zune HD is It’s awesome! Great UX. Don’t know about battery life yet, mine hasn’t run out....