The latest rumor to develop over the upcoming Zune HD reincarnation is about the 16GB version of the new Microsoft portable media player. Its been said that an engineer from Microsoft has leaked pricing info that the 16GB Zune HD will cost in the range of $250 and $280.

As pointed out by CrunchGear, the similar spec 16GB iPod Touch currently costs $300, this rumor therefore implies that the upcoming 16GB rival may be cheaper by around 10% to 20%. This is great news for Zune fans, especially considering this more affordable price will include that rather expensive OLED screen. Is it a temptation for iPod users?

[via CrunchGear, Ars Technica]