Confirmed – Zune HD hardware supports 1080p

In a recent interview with Mike Rayfield (General Manager Mobile Devices, Nvidia) he has mentioned that the up coming Tegra CPU that will be released on a wide range of devices (including the Zund HD) will “decode 720p and 1080p”. This sound like Microsoft may be taking a similar approach to the Zune HD as with the Xbox 360 by disabling the 1080p output on launch but later enable the option via a firmware update.

Take a look a the video starting at 4m:39sec where they start to talk about the processor design.

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While this is not a huge difference between 720p and 1080p Microsoft may want to flick that switch sooner rather than later as its just recently come out that the iPhone can handle 1080p video just fine.

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