PC Perspective reports Zune HD is the first major design win for NVIDIA's Tegra processor:
NVIDIA Tegra likely won the design with impressive statistics like its ability to decode a video stream using just 150 mWatts of power and output audio at only 20 mWatts.
The Zune HD features a stunning 3.3-in OLED touch screen display with a resolution of 480x272 and can playback just about any video including high quality H.264 content. While the resolution on the screen is somewhat limiting, the Zune HD has an HDMI output that will support HD video up to 720p - thus the need for a powerful graphics-based processor like NVIDIA's Tegra. The device also includes an HD radio receiver, IE-based web browser, Wi-Fi and accelerometers for rotation support.