We managed to get a confirmation from multiple industry sources that Zune HD will have a Tegra chip inside. It is up to Microsoft to officially confirm it, as Nvidia is tight lipped, but we are very sure that our sources are right.

Microsoft likes the possibilities of the chip including 720P HD playback, 150mW video playback and 20mW audio, as we mentioned here.

We've seen HTC prototypes of Tegra-based devices back at Cebit and we can tell you that the possibilities were really impressive, it can do much more than the iPhone platform and Microsoft will probably have a big technologically advantage with the Tegra powered Zune HD chip.

The big issue for Microsoft will remain the non-Halo effect that is on Apple side, plus the hundreds of thousands of applications that works on iPhone and iPod touch but Nvidia is the winner in this scenario as it will get a first big and serious customer for its very powerful mobile chip.