We have fabricated a new semiconducting material, (ZnO)x(InN)1-x (called ZION hereafter), which is a pseudo-binary alloy of wurtzite ZnO (band gap: 3.4 eV) and wurtzite InN (band gap: 0.7 eV). We have succeeded in fabricating epitaxial (ZnO)0.82(InN)0.18 films on ZnO templates by RF magnetron sputtering. XRD measurements show that the full width at half maximum of the rocking curves from (101) plane and (002) plane are significantly small of 0.11˚ and 0.16˚, respectively, indicating good in-plane and out-of-plane crystal alignment. High crystal quality of the films was also proved by deducing the defect density from XRD analysis showing that the edge type dislocation density is low of 8.2×108 cm-2. Furthermore, we observed room temperature photoluminescence from ZION films as a parameter of incident angle of He-Cd laser light. The results indicate that an emission peak of 2.79 eV is originated from ZION.