Engadget is reporting that they have received information on the Zune HD 4.5 firmware update. The next version of the Zune HD software will reportedly bring SmartDJ and added codec support for videos. Microsoft has said that they will not be adding DivX support, but will be supporting Xvid.
The SmartDJ feature will work like the Genius Mixes feature on an iPhone or iPod touch, which brings songs that go perfectly together in one album.
There is no word on when the update will be coming, but it will be released soon.
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