Zune video coming to Xbox Live

Two weeks after less-than-credible rumors about a special game-enabled Zune phone, Microsoft has officially announced the first nonmusic crossover functionality between its multimedia handheld and game console.

As part of an announcement this evening for the Zune HD--which can browse the Internet, play 16:9 movies in 480x272 resolution, and tune in to digital radio--the company revealed that the new device will have interoperability with the video marketplace on Xbox Live starting this fall.

"The Zune music player is an integral part of the overall Zune experience, and we're proud to be growing and extending our offering beyond the device," said Enrique Rodriguez, corporate vice president of Microsoft's TV, Video, and Music Business Group. "Delivering on Microsoft's connected entertainment vision, this news marks a turning point for Zune as it brings cross-platform experiences and premium video content to living rooms around the world."

Unfortunately, other than saying that both films and television programs for the Zune would be available on Xbox Live this fall, Microsoft revealed no details about the service. It only promised that attendees at its Electronic Entertainment Expo would "see first-hand how Zune integrates into Xbox Live to create a game-changing entertainment experience." GameSpot will be live-blogging and streaming the event on Monday, June 1 at 10:30 a.m. PDT from Los Angeles.

The release also did not mention when--or if--Microsoft will announce the gaming functionalities that it promised would arrive on the Zune by the end of 2008. So far, the device offers only five casual games for owners to play: Sudoku, Space Battle, Hexic, Checkers, and Texas Hold 'Em.