Microsoft launches MP3 player to rival iPod

Computer giant Microsoft goes head-to-head with rival Apple today as it launches its new Zune HD digital music player.

The MP3 player, which also plays video, costs 219.99 dollars (£133) for a 16 gigabyte version - typically about 4,000 songs - and 289.99 dollars (£176) for the 32 gigabyte version making them cheaper than the market leader, Apple's ipod.

The ipod Touch players are priced at 299 dollars (£181) and 399 dollars (£242) respectively.

The Zune HD, which is only available for pre-order in the United States and will not hit the shelves there until September 15, is slimmer than previous incarnations and now has a touch screen.

It will be available in five colours and has a built-in radio receiver, Wi-Fi, and can display high-definition video to a big screen.

Users can stream and download music from Microsoft's Zune Marketplace.

The company had no information on when the Zune HD would be available in the UK.