An engineer at Microsoft has ballparked the cost of the 16GB ZuneHD at somewhere between $250 and $280 (for reference, a 16GB iPod Touch is $300). That’s a little bit higher than I’d have guessed, but considering OLED screens are still expensive, to say nothing of flash memory, it’s a solid estimate. Trouble is, where are they going to get people to take it for a spin? Apple’s got a great spot for iPod discovery — maybe it’s time for Microsoft to do the same.

Honestly, a modest little store here and there with Microsoft hardware and a few partners could be a nice PR move for those guys. But I digress…

Rumor also has it that a 64GB version is planned for later in the game. Wow, that will be expensive. A note to Microsoft: you can’t have your device be the budget and luxury choice.

[via Ars Technica]