USA Today reports that Microsoft will be launching a new improved version of their popular MP3 player this fall - and it's going to be packing some pretty impressive specs.

The Zune HD will allow users to play files through a docking station on HD televisions and will also apparently link up with the X Box "to create a game-changing entertainment experience". Even better (as far as I'm concerned) it will feature a touch screen, Web browser and HD Radio receiver. The screen's use of organic light-emitting diodes should also improve battery life and image quality.

However, the next generation of iPod Nanos is rumored to be coming equipped with cameras - which could provide Microsoft with a little added competition.