Originally Posted by IGN

Also exciting from the gamer perspective is the word that the long-rumored portable Xbox will be part of the Zune family of products, and that it will benefit from the Xbox Live Anywhere program Bill Gates demonstrated at E3 this year. Other rumors include plans for multiple colors and masses of accessories available at launch.

Originally Posted by AVZombie

Microsoft’s much-anticipated rival to Apple’s iPod infrastructure, now officially known as Zune, will be launched with a 500 million dollar war chest, according to reports.
Zune is being touted as a family of hardware and software products, of which the first is a portable music device which incorporates a hard drive and wi-fi which will work both with an online music store and allow a level of social networking: Zuners will be able to view each others playlists to see how much they have in common, listen to tracks within a “controlled environment”, as well as make recommendations to each other.
According to a story in Billboard magazine (click the link above) the Zune music player will be followed by a portable media player.
One key differentiator to the iPod is that the Zune device will form part of Windows’ wider universe of connected and devices services, including media center PCs and Xbox Live.