Microsoft has announced an updated HD version of it’s Zune portable media player. Set to feature at next week’s E3 Expo, the Zune HD will support 720p video that can be output to an HDTV via a separate docking station with built-in HDMI port. The device also features a widescreen 16:9 OLED touchscreen with a resolution of 480×272, and will enable users to browse the internet over WiFi, stream songs from the Zune store. Microsoft are also promising to demonstrate how Zune will integrate with Xbox LIVE which could take the form of video or game downloads - will Apple be able to offer more when their expected iPhone revision comes out? Stay tuned. Or should that be zuned?

A Blu-ray edition of Zack Snyder’s Watchmen will be bundled with the game of the film according to Warner Bros. Interactive. Part one of PS3 game Watchmen: The End is Nigh was made available on the PSN in March, but with part two being released in July, consumers will be able get the whole thing and the director’s cut of the film in a two-disc Blu-ray package, featuring exclusive artwork. No word on UK confirmation, but we’ll keep you posted.

Imagine Publishing has launched it’s gaming super-site NowGamer.com

Using the latest technology, the site enables users to completely customise the layout to suit their own tastes, dictating what gaming content they want to see. Users can also move items around the page,and change the colour scheme to create a personalised version of this revolutionary site. Other innovative features include an interactive release date diary, Publisher Premiership, bespoke game awards, customisable widgets, and PowerLists, while an innovative article search and filtering system creates lists of reviews based on an almost limitless number of combinations.

Check it out at www.nowgamer.com

Blu-ray is set to make even greater use of its superior storage capacity this year - Sony has unveiled plans to release hybrid discs featuring both a film and PlayStation 3 video-game tie-in. “We are actively pushing, and the way that we see the future is that the movie and the game are placed on the same disc,” said Director of Hardware Marketing for the PS3, John Koller. “There are a lot of developers who say, we have this game based on a movie, wouldn’t it be great to marry these concepts? We will definitely see this stuff this year.” It may appeal to some, but will it catch on with PS3 owners, or will the movie-license-curseâ„¢ lead to great films being bundled with shoddy games?

With the release of the latest firmware update for the PlayStation 3 (2.60, available now) the console adds Blu-ray Theme support, enabling users to display special backgrounds and icons included on future Blu-ray titles. Much like the ones available on the PSN, expect Blu-ray themes to become yet another feature of movie titles, with the first reportedly Pineapple Express. The firmware update also includes support for DivX 3.11, as well as a plethora of new photo gallery features. For more info check out the video above.