More details on Microsoft's worst-kept-secret continue to filter out through the blogosphere. Both Engadget and Gizmodo have updates on the device from their sources, details further cementing the idea that Zune, at least in its initial release, will not have anything to do with games. That doesn't, however, mean there won't be Xbox 360 hooks.
Much like how an iPod can share music with an Xbox 360 via a USB cable, this will also be possible with Zune. The one catch with Apple's hardware, however, is incompatibility with iTunes-purchased files. As you can probably already guess, there won't be similar issues with music bought from the store Microsoft will be sponsoring alongside Zune.