Microsoft has released a version of its 64GB Zune HD, lowering the price of models 16GB and 32GB in the process. But the announcement was made without fanfare in the technology community. Zune HD is already dead in the water? And if so, should it be?

Personally, I think the Zune HD is an underrated device.  It’s 3.3-inch, multi-touch OLED display is more vibrant than that of the iPod Touch, offering a better video viewing experience of videos of up to 720p resolution. Its Smart DJ feature rivals the Genius option within iTunes. And for fifteen dollars a month, the Zune Pass offers an unlimited music subscription, you just do not own the files.

I seriously doubt the Zune brand will ever have the popularity of the iPod family. Thanks to the App Store, there’s a wider variety of things to do with the iPod Touch. But Microsoft has crafted a well-designed device with a user interface that’s both stylish and functional. If you’re looking for a device mainly to play music and video, the Zune HD may fit your needs well.

Microsoft is currently selling the Zune HD 64GB model in their online Zune Store for $349 US.