Microsoft is expected is to release the details about its Zune HD music player in October, together with the release of the first Windows Phone 7 smartphone.
Citing sources close to the matter, HT Lounge has reported that CEO Steve Ballmer is set to unveil details about the Zune HD device during an 11 October event scheduled by Microsoft.
The HT Lounge industry insider also said that the device will come in 16GB, 32GB and 64 GB variants.
It is not yet clear whether the device will run on Windows Phone 7 OS or would use the older Zune software. Experts believe that it will run on Windows Phone 7, however.
Since Windows Phone 7 will offer synchronisation with Zune players, experts predict that the device will retain some of the old Zune software to support the smartphone OS.
Microsoft's Zune player has not been all that successful in the MP3 player market, despite a large and varied range of models, newer designs and comparatively cheaper prices.