Microsoft on Wednesday confirmed that it will launch a new version of its Zune portable media player in the United States this fall, which is seen as a direct rival to Apple's high-end iPod models.

The new Zune HD will feature a high-definition (HD) radio receiver, organic light-emitting diode touch screen, Wi-Fi connectivity and an Internet browser.

Its HD video output capabilities will enable customers to playback HD video files from the device through a separate docking station direct to HD television set, Microsoft said.

"This news marks a turning point for Zune as it brings cross- platform experiences and premium video content to living rooms around the world," Enrique Rodriguez, a corporate vice president at Microsoft, said in a statement released on Wednesday.