In September, Microsoft will release the Zune HD. It will have all the nice features missing from an iPod like a multi-touch OLED screen, wireless synching, radio receiver, subscription service and HD video out. And what will everyone do? Yawn. No one will care.

What Microsoft needs is a Steve Jobs “Oh, one more thing…” moment when they introduce the Zune HD. They need to release it as a phone, running Windows Mobile 6.5. The only thing that will save the Zune is to take on the iPhone by offering a cool phone free of AT&T… I think they pretty much lost the mp3 market and no matter what features they introduce with the Zune, simple things like copy/paste in the iPod Touch or iPhone will overshadow the Zune. Current Windows Mobile devices are just missing the cool factor and right now the Zune HD is getting some pretty good press. They need to build on that.

Make the Zune HD a phone. Then sign an exclusive deal with Verizon. Run ads like “The iPhone is great if you want to browse the Internet like you were using dial up in 1990. But if you want reliable 3G speeds, get a Zune HD on the Verizon network.”

And if they do all this, do you know what will happen??? Everyone will yawn…