Microsoft announced that they will be bringing the Zune brand as a media service to the Xbox 360.
Zune will be a premium partner in the Xbox LIVE Video Marketplace, bringing a catalog of TV and film to the Xbox.
Zune will occupy the first slot within the Xbox user interface in the Xbox LIVE Video Marketplace.
At the E3 2009 next week, attendees will see firsthand how Zune integrates into Xbox LIVE to create what Microsoft calls a game-changing entertainment experience.
Microsoft also unveiled the rumored Zune HD today. So Microsoft tries again to battle the Apple iPod and iTunes eco system. We will see what Apple's next move is to fight off Microsoft yet again.
Via the Zune site.