Zune to support videogame content by '08

Microsoft will introduce videogame content to the Zune media player within 18 months, according to a new report.

The device, which is compatible with the Xbox 360, will be used for Microsoft's first serious entry into handheld gaming, where it will challenge the dominance of rival products from Nintendo and Sony.

According to a report on Bloomberg.com, corporate vice president of marketing and publishing for Microsoft, Peter Moore, revealed at CES this week that gaming for Zune is on the way, with the media player's large screen considered one of the unique selling points of the device.

The 30GB Zune launched last November, and features a three-inch screen for displaying music, pictures and video. It also supports wireless sharing, allowing users to sample full-length recordings from another Zune and store them for up to three days.

Although the Zune does not currently boast support for the type of graphics applications seen in rival DS or PSP consoles, Microsoft could theoretically release a new videogame-compatible model Zune on the market before the suggested debut of gaming content in July 2008.