Microsoft’s incorporation of Zune into its next release of mobile phone software is, to put it mildly, big news for Zune.

Announced at Mobile World Congress in Barcelona, the release of Windows Phone 7 Series – the next operating system for Windows mobile phones – includes fully-branded Zune features for music, videos, and podcasts.  Beyond that, the look and feel across the Windows Phone 7 user interface – at least as far as the screenshots and video demos I’ve seen in reports from Barcelona – is distinctly “zune-esque”.

Effectively, this puts every Windows mobile device – and there are a lot of them – on an upgrade path that includes Zune. The phones will have built-in ties to Zune Marketplace content, for music, videos, and podcasts.

What does this mean? Well, this is an unprecedented leap for Zune in terms of…

Exposure. Millions of phone users – when they upgrade to Windows Phone devices starting later this year – will be treated for the first time to the Zune user interface. They’ll get a firsthand look at the friendly navigation, and – I’m presuming – the appealing graphical content of the Now Playing animated background artwork and text. Music can be downloaded or streamed to the phone from Marketplace, over either WiFi or 3G networks.

No doubt most of those people would never have ventured to the Zune experience before, and I’m sure many will be pleasantly surprised at the Zune experience. And even more so for those who sign up for a Zune Pass subscription.

Which brings up the question of…

Scale. No doubt we’ll see significant leaps in traffic to Microsoft’s Zune Marketplace, with corresponding growth in download activity. The Zune.net site – which impressively is taking on more and more functionality akin to the Zune software client – will likely see similar growth. Recent upgrades by Microsoft to the back-end Zune infrastructure seem to reveal an anticipation of amped-up demands for Zune services. This has to be a paramount focus for Microsoft, so that the performance of Zune online access and delivery of content downloads are a positive part of the Windows Phone experience.

Software vs Hardware. I expect we’ll continue to see Microsoft-branded Zune players, especially with the positive reception that last fall’s Zune HD received. But now, for the first time, the Zune experience will be available on mobile devices beyond the Zune player line-up.

It’s like the Windows business model: Microsoft’s OS business grew at phenomenal rates because it made the OS available to many hardware partners. Windows was and is available on high-end and low-end PCs from many manufacturers. Not a bad business model to apply to the phone market, if Microsoft can address the need for…

Consistency. With many manufacturers building devices for Windows Phone 7, how will Microsoft ensure a consistent user experience? According to Engadget, Microsoft is laying down strict requirements for manufacturers, including hardware specifications of single aspect-ratio WVGA screens, hardware buttons for Start / Back / Search / Camera / Power, capacitive multitouch, CPU and GPU requirements, WiFi, Accelerometer, FM radio, and high-resolution cameras.

I’ve run this website since July 2006 – a few months before Microsoft released its first Zune player and unveiled the Zune music service. I’ve followed Zune through all of its player generations, through the growth and maturing of its Marketplace, and through the expansion of its online Zune.net experience.

In years ahead, when we look back at the defining moment in the Zune story, it might just be this week’s announcement.

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I’ll be in Redmond, meeting with Microsoft for the MVP global summit. Most of my time will be with the Zune product team. That is time I value, as this group has always been generous with their time with MVPs. I’m looking forward to that opportunity, and to learning about Zune activities from their perspective.

Also this coming week, Microsoft will be announcing Windows Mobile 7, an important update to its smartphone operating system. This will occur at the MobileWorld Congress in Barcelona. The new OS will be demo’d on Monday.

I have no insider information on this whatsoever, but find it intriguing that the Wall Street Journal is speculating that the user interface will be inspired by Zune HD. Other reports, less reliable in my opinion, are postulating that Microsoft will release a device as well… a “Zune phone”, if you will, or the mobile device code-named “Pink” that has been long-rumored.

I arrived here late today, and missed last night’s keynote from Steve Ballmer. If you missed that, you can see the coverage on Engadget’s liveblog.

Starting tomorrow I’ll be navigating through the fields of booths here, for the latest in audio products, 3D, mobile entertainment, and other geeky innovations.

Meanwhile, my MVP contacts let me know that, in demos of Zune HD this week, they are shedding light on a couple of new Zune HD features planned for later this spring.

First, the Smart DJ feature, which dynamically creates playlists based on a seed song or artist, will be made available directly on the Zune HD player. (Presently it’s availably through zune.net and on Zune PC software. When Smart DJ is used on the HD, it’ll generate playlists pulling from music stored on the device, and from music on Zune Marketplace when the player is connected to the net via Wi-Fi.

I love that! Smart DJ is one of my favorite Zune features – it provides a Pandora-like experience with all the benefits of the Zune Pass subscription. It’s a great way to enjoy and discover new music and artists.

The other feature coming this spring: the Facebook for Zune HD app. This has been hinted at earlier by the Zune team; hopefully I can get view a demo of that tomorrow or get more details on it.

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Zune players ordered through Zune Originals are priced at $219.99 (16gb) and $289.99 (32gb), and can be engraved with text and/or artwork for an additional $15. A selection of engraving designs are available including artist designs, major league sports logos, and Xbox themes.

Color choices through the site are platinum, black, blue, red, green, purple, and magenta.

The black or platinum models can also be purchased sans engraving from Amazon (aff) for $189.99 (16gb) and $269.99 (32gb).

This gives LIVE users access to Zune video marketplace directly from Xbox. It also provides interactive video viewing features such as Party mode, where you interact with up to seven friends through avatars and voice chat, while watching the same video.

High Definition video is available via Zune Marketplace via Xbox 360. The “instant-on” streaming experience delivers HD video up to 1080p video and 5.1 surround sound.

The seamlessness of using video across Xbox, Zune, and PC remains a challenge, but there is progress. U.S. TV shows, for example, can be purchased once and watched on your PC, Zune HD and on your Xbox. And it’s great to see Zune having a fingerhold in each of those three areas.

Zune on Xbox LIVE is a plus-up for Xbox users, but the real benefit here is for Zune. This makes the Zune brand and content more visible for millions of Xbox users worldwide. That’s a valuable mindshare to tap into.

Zune video on Xbox Live is now available in: United States, Canada, Australia, Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, New Zealand, Norway, Spain, Sweden, Switzerland and the United Kingdom.

After a few days of playing with the suite of new games released for Zune HD last week, our forum members are weighing in with their first impressions.

(Got your games yet? Here are instructions for getting the games loaded on your Zune HD.)

These games are a leap forward in quality compared to earlier game releases. Several of them – notably Audiosurf, Project Gotham Racing, and VanSk8 – take great advantage of the OLED display and introduce 3D gaming to Zune HD.

The new games are: Project Gotham Racing, Audiosurf Tilt, Vans SK8: Pool Service, Lucky Lanes Bowling, Piano, and Checkers. My personal favorite is PGR, which responds crisply to accelerometer movement and makes good use of the HD’s bright display and sound.

 We’re getting good reports on battery life, too. Zunerama member techspian reports he played Audiosurf for six hours and still had battery life. (This makes us a bit concerned about techspian, but that’s another story.)

The games are ad-supported free downloads. (Each game has a 15- to 30-second ad that plays while the game loads.) These are Zune HD games; they’re not playable on earlier Zune players.

Tell us about your Zune HD gaming experience in this forum thread.

• Official Zune site
• TrustedDeals.com

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In recent months, I’ve been intrigued by the new, very small projectors that are becoming available. Lately I’ve been looking at the P1 Pico Projector, kindly sent to me from AAXA Technologies.

This projector displays pictures and videos on a wall or screen, and it literally fits in a shirt pocket. At a mere 6 ounces, it’s definitely an easy item to carry around. And it runs quietly and coolly – its 6 lumen LED lamp is not as bright as full-size image projectors, but also avoids the loud fans and heat generation that come with those larger units.

You connect your Zune or other media player to the projector using a male-male headphone jack cable. Video output is provided through the TV-out feature. Older Zune flash players don’t have TV-out capability, but your Zune 30GB (first generation), Zune 80 or 120GB, and your Zune HD will all output to the projector.

The 12 lumen lamp projects a decent beam for such a small device, and you can in fact watch your pictures or videos passably in a partially-lighted room. Your viewing experience improves with a darkened room; you can back the projector up to display up to a five-foot-wide image on your wall, although a 15 to 30-inch diagonal projection size is recommended.

Here are some shots of the display at a size of about 24 inches:

At larger sizes, you need to darken the room for a better viewing experience. I could project a reasonable four-foot-diagonal image in a darkened room. Pretty impressive to me, for a handheld, battery-operated projector.

The projector displays the images or videos in 640×480 resolution, and in a 4:3 aspect ratio. A focus lever can be used to manually focus the lens to match your distance from the wall or screen.

The projector has a built-in Lithium-ion rechargeable battery – a thoughtful feature that enhances the Pico’s portability. It enables you to use it in a variety of settings, such as on a plane (I’ve tried that with some success) and in other places where a plug-in is not possible or convenient. You’ll get an hour of video display out of a fully-charged battery.

It also comes with 1GB of built-in memory, and slot for a Micro-SD card. You access the on-board memory by connecting a mini-USB cable from the projector to your PC; the projector appears as an external drive that you can drag files to. You can store music and videos right onboard, or on an SD card… and display them from the projector without a Zune or other device connected. The P1 Pico has controls to for navigating to the file of your choice, and providing play/pause/fast forward/reverse functionality as well as volume controls. It supports JPEG, GIF, and BMP pictures. For videos, it’s compatible with AVI, MPEG1, and other formats in 640×480 resolution.

The only other thing you could want in an ultraportable device is sound, and the P1 Pico provides this through its tiny built-in speakers. For a fuller sound, I’d recommend connecting the Pico to an external sound system with the headphone jack.

Here’s a 360-degree view of the AAXA P1 Pico projector:

I recently took the Pico on a cross-country trip, and I must admit it was fun projecting a movie from my Zune onto the seatback in front of me, on the flight out.

With the Pico Projector you get an AC adapter, an RCA adapter for video and audio input, and a comprehensive instruction manual.

At $219, the P1 Pico is a fraction of the price of full-size projectors. And, while it cannot certainly can’t match the brightness of a full-size image projector, it’s a compelling gadget if portability is a priority for you.

You can see more about the P1 Pico at the AAXA website.

Zune software 4.0 becomes available today, in a significant update timed to coincide with today’s release of the new Zune HD player.

Among the new features: Quickplay (an up-front graphical display of content you’re likely to want to play), Smart DJ (creates playlists based on an artist, track, or album in your collection or in Marketplace), Movies (rentals and download-to-own) from Marketplace, along with an assortment of welcome new advances in content management.

And, taking its first baby steps towards a full-fledged Apps Store, Zune Marketplace now sports an Apps section. A handful of free apps are available, including a weather app, calculator, and a small assortment of games.

Read on for more details and screenshots on these new Zune software and Zune Marketplace features! Click on any screenshot to see it full-size.

Quickplay displays a convenient graphical menu of the content you’re most likely to want to play. This includes any content that you’ve “pinned”, as well as your new, favorite, and recently-played content. This is not just for music but for all content including podcasts, videos, radio stations, pictures, or playlists. Quickplay also displays recommended Zune Marketplace content.

Quickplay appears as one of the new, simplified menu options from the Zune software main screen. Quickplay is also available on the Zune HD player. It’s designed as a quick way for users to be one touch away from accessing the content they care most about when they turn on their Zune HD.

Smart DJ creates auto-playlists based on a given artist, album, or track.  From your collection or from Zune Marketplace, you can right-click an artist, album, or track, then select Play Smart DJ mix, and a playlist of related music will begin streaming. You can also choose to create a Smart DJ playlist that’s saved in your collection. The Smart DJ selections come from any content in your collection, and for Zune Pass holders it includes tracks from Marketplace.

It strikes me as a progression from Pandora’s web streaming music service and the Apple Genius feature. Smart DJ is able to use actual playcount information from all users to determine an appropriate mix of related music.

But it’s the integration of Zune Pass with Smart DJ that really sets it apart. While Genius will make iTunes music recommendations outside of your collection, Smart DJ takes it a step further for Zune Pass holders – those recommendations are directly playable in your Smart DJ playlist. And, with a single mouseclick you can download all songs in a Smart DJ playlist to add them to your local collection.

If you don’t have a Zune Pass, Smart DJ still works with your personal collection; additional Marketplace tracks are viewable but grayed-out. (If you prefer, you can unselect a radio button, to filter the tracks down to only those from your personal collection.)

Now Playing, the popular graphical animations feature in Zune software, is now on the Zune HD player itself. While playing music, a moving background of text, artist photos, and album art is displayed on the player.

MiniPlayer mode is now available, which collapses the Zune software window to a small music/video player on the desktop. From the MiniPlayer you can click on the artist title to see tracks, quickly access Smart DJ playlists or jump to music pinned in the Quickplay menu.

Movies are now available from Zune Marketplace. You can either download-to-own or rent movies. You can choose standard definition or high-def, and movies are viewable on PC, Zune HD, and Xbox LIVE.

Meanwhile, the download-to-own TV show collection continues to grow and is now at over 40 networks. You can purchase TV shows and download them to Zune PC software, Zune HD, or Xbox. There’s no extra charge for re-downloading to a different platform among those three.

Note: when renting or purchasing video, the downloaded file is optimized for the platform you select: 1080p for HDTV, 720p for Zune HD video out, or standard definition on the PC.

For rentals, you have 14 days to start watching your video, and 24 hours in which to watch the video (as many times as you want) once it starts playing.

Apps (games and utilities) are now available through Marketplace, with a small set that we have to assume is the first steps toward something much larger. Earlier releases of Zune software provided a testbed of sort for games and apps development, but no organized store or collection of downloads existed. Now Zune moves closer to a full-fledged apps store, by offering a handful of free games and utilities from Zune Marketplace.

Microsoft indicates that more apps are on the way, saying that “later this year” we can expect Twitter for Zune, Facebook for Zune, and 3-D games including “Project Gotham Racing: Ferrari Edition,” “Vans Sk8: Pool Service” and “Audiosurf™ Tilt.”

While it hasn’t been announced yet, it seems inevitable that apps for Zune will be opened up to developer submissions.

Games can be downloaded to Zune HD via Zune Marketplace, either directly through a Wi-Fi connection or by connecting the Zune HD to the Zune PC software. Sad news for owners of earlier Zune players: apps will only be supported for Zune HD, not for earlier Zune players.

Zune Pass users will be pleased to see some thoughtful tweaks to the Zune Pass “10 to keep forever” feature. Version 4.0 introduces a Zune Pass song credits reminder message. Appearing in the upper right hand of the PC software, it displays how many free song credits you have and the expiration date.

Having indecision about which songs to use your credits on? Now you can click the song credit text, and the PC software will calculate a suggested song list based on the music you have listened to the most and that are among your highest rated tracks. A simple click andyou can add these tracks to your permanent collection.

Zune Pass subscription works on three PCs, three Zune devices, and now enables streaming of music through a web browser from Zune.net. (The web browser must support SilverLight; both Internet Explorer and Firefox do.)

Personal Recommendations have been improved through an updated Picks algorithm. We’re told that the new algorithm pays closer attention to your listening habits and those of the entire Zune music community. And, you can now give feedback on recommendations, by hovering over a recommendation and clicking ‘Show me something else’.

Collection filtering: You can now filter the display of your collection, to display all of your content, your Zune Pass content only, or your unprotected content.

Firmware updates: I haven’t had a chance to preview the 4.0 firmware update, as it was not made available to reviewers prior to its public release today. Here are a couple of items of note, though:

• I do know that Unicode is now supported by Zune HD, for display of foreign language character sets. I presume it’ll be available for earlier models as well in this firmware update, but that’s my speculation.
• Equalizer settings are available for Zune HD. I do not expect that this will be available for earlier Zune players; again, that’s my speculation.
• For owners of earlier-generation Zune players, you’ll get a firmware update today. As far as I know, the update will not provide new functionality but will enable your player to sync with the new Zune PC software.
• While most of the Zune software updates listed above will benefit all Zune owners (HD as well as earlier models), some new Zune features will not work with older players. Apps from Marketplace won’t run on older-generation Zunes, for example. Curiously, older Zunes won’t be able to have rented movies synced to them, although they will be able to download and playback download-to-own files. Other features intrinsic to the touchscreen user interface of Zune HD, including the web browser and Quickplay, are available on Zune HD but not on earlier Zune models.

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Hot off the wires, here’s the press release on the new Zune unveilings today. Stay tuned for our Zune HD unboxing and a survey of new software features!

Microsoft Introduces a Powerful New Zune Media Player, PC Software and Online Services

Zune, Microsoft Corp.’s end-to-end digital entertainment service and media player, today announced significant advancements for consumers. The new Zune HD touch-screen media player is now available at retail, and a powerful update to the Zune PC software is free for download. For the first time, standard- and high-definition (HD) movies can be purchased or rented1 through the Zune Marketplace online store, and a new streaming music service on Zune.net lets Zune Pass subscribers listen to music from a Web browser. The updates to the Zune hardware, software and online services released today, combined with a new Zune video offering on Xbox LIVE coming later this fall, bring customers instant access to their favorite music and videos anywhere,2 across their mobile device, PC and TV.

“With today’s announcement, the Zune business is growing into a comprehensive entertainment service that’s no longer tied to any one screen or device,” said Enrique Rodriguez, corporate vice president of the TV, Video and Music Business at Microsoft. “Zune lets consumers connect to their music, TV shows and movie content and enjoy it on the three screens they use every day.”

Zune HD: Next-Generation Digital Entertainment

Zune HD marks a significant step forward for portable media players, combining powerful hardware components such as an organic light-emitting diode (OLED) multitouch screen, an NVIDIA Tegra HD processor and HD Radio capabilities with software advancements such as the new Quickplay menu, a well-featured Web browser, and engaging music and video playback features to deliver a new portable listening and viewing experience. Quickplay is a new signature menu for Zune, putting customers one touch away from the content they love, such as favorites, last played items and media most recently added, eliminating the need to dig through menus to find the music, videos, pictures or podcasts they want.

With Zune HD, consumers now have the ability to store and play back 720p HD video files to an HDTV using the new Zune HD AV dock accessory. Consumers can buy or rent HD content from the Zune Marketplace, sync that content to a Zune HD device, and take it with them to play back on a large-screen HDTV in the home or on the road.

Every Zune device currently includes a built-in FM tuner, and now the Zune HD device offers the first portable HD Radio receiver on a Wi-Fi-enabled device. With HD Radio, listeners experience crystal-clear sound on more than 2,000 stations in the U.S. and have access to more than 1,000 stations that simulcast content in a variety of formats, from adult contemporary to news talk. Zune HD users can also tag songs they hear on supported HD Radio stations for purchase immediately if in a Wi-Fi hot spot, or complete the purchase later when using the Zune PC software.

Zune HD also features new casual games and non-gaming functionality such as a calculator and an MSN Weather application. Later this year, Zune plans to release free applications such as Twitter for Zune and Facebook for Zune, in addition to fun 3-D games such as “Project Gotham Racing: Ferrari Edition,” “Vans Sk8: Pool Service” and “Audiosurf™ Tilt.” Games can be added to Zune HD via Zune Marketplace over the Wi-Fi connection or when connected to the Zune PC software.

Zune HD is available from major retailers with a black 16GB version for $219.99 (estimated retail price) and a platinum 32GB version for $289.99 (ERP). Additional red, green and blue devices are available in both capacities from Zune Originals (http://www.zuneoriginals.net), where customers can also customize the back of the Zune HD device with art and text etchings to create a unique Zune.

“Our research indicates that there’s strong consumer demand for dedicated media players and Zune HD offers visible differentiation in this market,” said Michael Gartenberg, vice president of strategy and analysis at Interpret LLC. “Microsoft is also offering some compelling software and services with the Zune ecosystem that will help Zune HD stand out from other offerings.”

Greater Access to and Control of Music and Videos

Zune is also refreshing its free Zune PC software with new discovery and recommendation features, such as Quickplay and Smart DJ, that help users find and play digital content. The Quickplay menu available on the device is also featured on the PC software, allowing favorite content to be displayed along with most recently played and added music, video and podcast content.

The new Smart DJ feature showcases the power of the Zune software and services by creating endless playlists using any artist, album or song as the starting point. For Zune Pass subscribers, Smart DJ will queue song recommendations from both the customer’s collection and from more than 6 million tracks in the Zune Marketplace. Nonsubscribers will get Smart DJ recommendations from the user’s music collection. Movies make their way into the Zune PC software this fall for rental and purchase. Users can watch movies in the Zune PC software with a full-screen viewing mode or sync them to Zune HD for viewing on the go. Many titles are available in HD and standard definition, with additional titles making their way into the catalog in coming months.

Streaming Music, On Demand

Now as Zune Pass subscribers, not only can customers enjoy access to close to 6 million songs from the Zune Marketplace catalog for $14.99, the price of one CD a month, but they can also log into Zune.net and stream full albums and tracks through a computer’s browser. Customers will also find the Smart DJ feature on artist pages in Zune.net, which means they are one click away from starting an endless playlist to keep them rocking through the day.

The Zune Service Extends Across Microsoft Platforms

Later this fall, Zune video will expand to nearly 20 million Xbox LIVE users, combining the Zune and Xbox video stores so consumers have access to more content provided by Zune. With unified video catalogs on Zune and Xbox LIVE, customers will have the ability to play purchased movies and TV shows across Xbox, the PC and Zune HD. Zune will also be introducing new technology enhancements in Xbox LIVE, providing a choice to download or instantly stream HD video in full 1080p with 5.1 surround sound. In addition, the integrated Zune video service will be rolled out later this fall to 17 international markets: Canada, Australia, Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, New Zealand, Norway, Spain, Sweden, Switzerland and the United Kingdom.3 More information on Zune and related images is available at http://www.zune.net/press.

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Zune HD arrives with a preloaded promotional video. Those of us who received early review units aren’t able to sync additional content to the Zune HD until the 4.0 firmware gets released on September 15.

As a result, the little promo video is getting a lot of air time in the first pre-reviews and hands-on looks at the Zune HD!

If you haven’t seen (or heard) it in its entirety, here’s the whole 60-second piece. It’s another one of those Zune-ish conceptual art animations… and I like it. Sorry for the poor audio quality – I had to use Aux-In on my sound system from my HD’s headphone jack, and my PC microphone didn’t pick it up well. The sound track is “Blackout“, by The Whip.

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