As usual, Microsoft seems to be playing catch, this time it’s with Apple. Rumor has it, Microsoft is going to be announcing their Zune Touch, which is supposed to compete with the iPod Touch. OK, so first of all, couldn’t they come up with a better name? Second of all, I do believe Zunes will never compete with iPods.  More importantly though, seems like Microsoft has missed the boat, again!

Since we are talking about the Zune Touch rumor, let’s look at what current rumors there are about Apple’s next line of iPod Touch. OK, sit down Bill, the next gen iPod Touch, according to some serious and unofficially confirmed rumors,  will not have a 3.5′ screen like the current one. Nope, not 4 or 5 either. Depending on who you ask, the device will boast either a 7′ or 9′ screen.

You heard right! Apple is going to be releasing an iPod Touch HD. It will be a gigantic iPod (obviously it will be more like a tablet device than an iPod) with all the amazing advantages of an iPod Touch, including its OS, accelerometer, and most importantly the App Store. According to Arrington, we have no info on pricing but it is expected to go for significantly more than the $400 32GB iPod Touch.

So what do I mean when I say these rumors are unofficially confirmed? Well, Techcrunch has 3 independent sources for this scoop, including one that has supposedly held the device. That’s good enough for me! Does the thought of an MP3 player with a 3′-4′ touch screen, made by Microsoft, still excite you?

-Hillel