This alleged promo video for Microsoft's new music player, the Zune HD, shows that while Microsoft aren't exactly making a big deal out of it, the thing can definitely play games of some sort.
You'll see a glimpse of a racing game if you head to about 30 seconds in. And below, you'll see that while games aren't important enough to the device to warrant full-blown Xbox brand integration, they are important enough to get a mention on the Zune's box art.
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Zune HD Promo Video Offers Quick Peek at Hardware's 3D Gaming Capabilities [Gizmodo]