Microsoft is slowly developing a second generation HDD-based Zune and the long-rumoured flash-based Zune. The latter will be Microsoft’s attempt to take on the iPod Nano, seeing as it is Apple’s most successful mp3 player. It is expected to have maximum storage capacities of at least 8GB, although a 16GB model is quite possible with fast-dropping NAND flash prices. The second generation HDD-based Zune will be both smaller and lighter than the Toshiba-sourced first generation model. It will be built from-the-ground-up with Microsoft playing a major role in the design. "There are definitely some cost efficiencies, but the more important thing from our perspective is the flexibility and control we have in creating a device from scratch and making it down to the last component what we want it to be," said Jason Reindorp, marketing director for the Zune.
News source: DailyTech
















This will allow us to apply our expertise producing our own hardware: Xbox, mice, keyboard to build the next generation from the ground up.
Source: Zune Insider
I could be wrong, but I'm pretty sure the Zune software and WMP share a library, or atleast the same information from it. When I apply changes in either, the other detects them.
Yup, and Microsoft understands this and is commited to short term loss for a long term gain... it helps that they have the financial background to help too.
For some reason i don't like the sound of that
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