A new media processor has recently been developed by a company called ZiiLABS, the processor is called the ZMS-08 and is said to be designed to provide Blu-ray quality to future handheld devices.

New ZMS-08 StemCell Processor Offers Faster, Lower-Power Single Chip Solution for Full H.264 HD 1080p Video Playback, 720p Video Conferencing, 1080p Encode, OpenGL ES 2.0, X-Fi Audio and 1GHz ARM Cortex Application Acceleration.

You may have already guessed the company is a subsidiary of Creative, Creative have previously manufactured devices such as the Zii Egg, whether other future Zii devices will use this new processor is currently unclear.

The XMS-08 will be able decode full HD 1080p H.264 and also be capable of simultaneous H.264 encode and decode at 720p, due to the processors performance it is thought that we may see it used in a wide-range of devices which may include netbooks, home media hubs and web tablets.

It is thought that shipments will begin in Q1 2010, so I would imagine we will see devices using the processor possibly in Q2/Q3 2010.