And now, Pinkie, Microsoft will take over the [entertainment world]…or so it would seem.  News has been floating around the Intertubes today about the previously rumored Zune HD.

Apparently, Microsoft is aiming the upcoming Zune to be a complete entertainment device, combining features from the Zune, X-Box,and even Skybox online storage.  The new codename appears to be xYz, highlighting the fact that this will fall somewhere between the X-Box and Zune. 

If true, the new Zune or xYz could be the ultimate converged device.  But, of course, none of this is true.  Or maybe it all is.  Frankly, until Microsoft makes an official announcement, we’ll just chalk it up to rumor…wishful thinking…and possibly naive optimism. 

So let us know what you think about the recent rash of rumors about the new Zune xYz HD.  Will this be the one device that rules them all?  Or will it be just another failure to launch?  let us know your thoughts in the comments.

[via Engadget.  Image via Boy Genius Reports]

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