While Microsoft has yet to show apps or or games for the ZuneHD, the video clearly shows a 3D racing game being run on the device. The user who posted the video is calling it a Forza 3 port though I’d be surprised if that were the case. For all we know, this could simply be video preview designed more for developers rather than end users.
Either way, hopefully it points to the device getting some sort of app store/games. The iPod Touch is the main competition here and I just can’t see the ZuneHD taking even a small chunk out of the market share of the device without the ability to run applications.
Have a look at the video below: