The 16GB and 32GB models come in cheaper than the iPod touch.
Though it appears to be down now, yesterday Amazon launched a product page for the Zune HD detailing not only pricing, but a release date for the highly anticipated portable video and music device. Seen as a strong competitor to the iPod Touch, the Zune HD is priced appropriately.
The 16GB model, the smaller of the two will sell at a price of $219.99, roughly $45 cheaper than the equivalent sized iPod Touch on Amazon. The 32GB player looks to sell at $289.99, a full $80 cheaper than the 32GB iPod Touch on Amazon, and $110 cheaper than buying the Touch directly from Apple.
Certainly Apple will have a retort in the coming months, but with the Zune capable of 720p video output and access to high def content via the Zune marketplace, Apple may have some work ahead of them.