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The iPhone gets HD radio.

(Credit: RadioShack)

Staying competitive in an iPod-ruled marketplace is a challenge, and not just because of the player's built-in virtues (or Apple's massive marketing budget). The reigning king of the MP3 players has an advantage simply because it resides at the top of the heap, and that advantage comes in the form of feature-adding third-party accessories. Case in point: the Gigaware In-Line Remote with HD Radio, an $80 add-on for the iPhone and iPod Touch.

That's right, kids...that would be the iPod addressing a major selling point and advantage of the Zune HD. Please don't act surprised. You knew this day was coming. And yes, the Gigaware remote does allow display of track information on the iPod screen as well as song tagging, which let's you find songs easily for later purchase.

So let's recap: 32GB Zune HD costs $289; 32GB iPod Touch with HD radio addition costs $379. Not exactly apples to apples, but which one do you find more attractive? Does HD radio even matter? Discuss.

After months of increasingly wild rumors, CNET's Ina Fried got the official scoop yesterday: Microsoft is indeed releasing the Zune HD this fall. The device will feature an OLED touch screen, high-definition video output (with an optional add-on), a version of Internet Explorer (it sounds similar to the version planned for Windows Mobile 6.5, which uses the core IE6 engine but adds Flash support, as well as some technology from IE8 to better support JavaScript), and HD Radio.

(Credit: Microsoft)

I spoke to the Zune marketing team this morning, and they didn't have much to say beyond those points. In fact, they weren't originally planning on saying anything until later this summer, but felt they needed to set expectations for Zune customers in light of all the rumors.

Here's why: the Zune HD isn't going to be the super-device that some geeks had been hoping for. It will play games--just like today's Zunes, which ship with a couple simple games--but it won't be a full-fledged gaming device like the Sony PlayStation Portable or Nintendo DS. It won't have its own application store, although Microsoft hinted it might connect to the forthcoming Windows Marketplace for Mobile, which could let third-party apps like Facebook and Pandora find a home on the device. It won't feature WiMax connectivity, although that might be planned for a future touch-screen phone with a similar form factor.

In other words, this is Zune 3.0, a music-focused device with a nice touch screen. It'll support video and apps, sure, but the team is focusing on improving the music-playback experience--think album art, more detailed artist pages with images, perhaps lyrics or video content.

Will these features be enough to get users to choose a Zune HD instead of an iPod Touch? The main difference seems to be HD Radio. I believe Microsoft when they say FM radio is the Zune's second-most important selling point, but Zune users are a very small portion of the overall MP3 player market--the tens of millions of users who bought an iPod didn't care about radio. There may be some other killer features we don't yet know about, and there's always the Zune Pass to consider--a great deal at $14.99 a month for unlimited streams and 10 permanent downloads--but I think the uphill battle against Apple will continue.

As far as the other half of the news goes, it's been clear for some time that Microsoft was getting ready to integrate the Zune Marketplace into Xbox Live. The company will have more details to show off next week at E3, so I'll save further comment until I see what they've got.

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Sony's XDR-F1HD HD Radio has developed a real buzz among my audiophile pals; on second thought maybe buzz isn't the right word. It's the quietest, noise-free radio I've ever used.

These guys can be real snobs and only listen to ultra-high-end components, and some wouldn't be caught dead using mainstream gear with their hi-fis, and yet they're all going ga-ga over the Sony. We're all thinking it's too good to be true.

I originally heard about the Sony from Steven Stone, a writer friend, and then from an engineer at an American high-end audio company known for making awesome tuners that sell for thousands of dollars. The engineer was positively gushing about how good the XDR-F1HD is; not just that it sounded great, but also because it pulls in tough-to-receive analog stations with lower noise and distortion than tuners that sell for big bucks. You can read my full CNET review here.

I rushed right out and bought an XDR-F1HD from Amazon, and sure nuff, it's true, the little Sony is no baloney. Analog FM stations came in like gangbusters, clean as a whistle, and HD stations, like my favorite jazz station WBGO had "CD quality" sound. That phrase is tossed around a lot, but this time it's for real. I listened to WBGO with the Sony over my high-end system with Magnepan 3.6/R speakers, and the sound was amazing. It's day and night better than what I get from Sirius Satellite Radio, which is almost unlistenable over those speakers.

(Credit: CBS Interactive)

As someone who's never been a big fan of AM/FM radio, I never really saw the advantage of HD Radio. At first, the all-digital format promised little more than CD-quality digital transmission of existing stations. Then the broadcasters added multicasting, offering "HD2" stations that weren't available at all on analog hardware. They even sweetened the deal by temporarily reducing or suspending commercials on those HD2 stations (though that program has recently ended).

But the thing that most retarded the growth of HD Radio adoption was the price of the hardware. The earliest tabletop HD Radios, for instance, cost upward of $500--not exactly an impulse purchase. In the years since, prices have tumbled: tabletop and in-car models hit $200 last year, and newer HD-enabled clock radios can be found for less than $100 now. Still, as far as in-home options go, none of the models we'd tested had really blown us away.

That's finally changed with the Sony XDR-F1HD. ... Read more

A new firmware update to the Zune allows you to indulge in two-player games by linking two Zunes over Wi-Fi.

Donald and Jasmine discuss the latest Zune firmware, as well as their opinions on the current state of Bluetooth technology.

Also this week, an iPod concept that takes fashion gadgetry to another level, cute and tiny travel speakers from Sony, and thoughts on HD radio. Plus, the winners of our Burton prize giveaway are announced.

Listen now: Download today's podcast

... Read more

Click for more pics.

(Credit: CNET/Corinne Schulze)

iPod speakers are a dime a dozen. There are big ones and small ones; black ones and red ones; some with alarm clocks, and many with built-in docks. As one might expect, you don't have to look hard to find models with integrated FM--and even AM--radios, but if you must have cutting-edge tech, HD radio with iTunes Tagging is where it's at. Among the handful of models offering this feature is the JBL On Time 400iHD, a tabletop speaker dock with JBL's signature space-age design. At $300, the On Time is anything but cheap, but the plethora of features and excellent FM radio reception may make it worth it for some. Read the JBL On Time 400iHD review.

This navigation system in the old E-class is about to go away.

(Credit: CNET Networks)

Following in the footsteps of BMW, Mercedes-Benz announced it will offer HD radio in some of its 2009 models. HD radio is a digital broadcast that offers CD-quality sound for FM stations. BMW has been offering it on its models for the past year, and now Mercedes-Benz will include it as an option on the 2009 E-, M-, R-, GL-, and G-class, all but the E-class being SUVs.

Most radio stations in major cities have an HD broadcast now. There are approximately 40 stations in San Francisco alone. Because the format requires less bandwidth, many stations have multiple HD channels.

In our testing of various BMWs with HD radio, the sound is very clear, although it is still limited by the receiver's distance from the transmitting antenna. While we were listening to an HD radio station, we found that as the broadcasting distance increased, the HD would drop out and we would get the analog signal for a brief time before we lost the signal completely.

More importantly, the announcement by Mercedes-Benz also mentions that the 2009 E-class and its SUVs will get the same updated navigation and entertainment system we saw on the 2008 Mercedes-Benz C300. That's a welcome change.