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Zune HD Displays Gaming Functionality

Promotional video showcases 3D games running on Microsoftís handheld device

Microsoft has begun touting the gaming functionality of the Zune HD, according to a supposed leaked promotional video.

The video highlights the various features on Microsoft’s new device, including a clip of a 3D racing game, originally spotted by Gizmondo. This follows comments made by Shane Kim, corporate VP of strategy and business development at Microsoft's Interactive Entertainment Business, that a Microsoft handheld gaming device was an inevitability and only a matter of “when”.

Last week, Apple announced that it would be pushing the iPod touch as a gaming machine and lowered the price of the 8GB model to USD199.