Microsoft is said to be working on two new Zune digital audio players. The first one will be the second generation Zune and the firm is also preparing a Zune that uses flash memory. This flash-based Zune will compete with the iPod nano from Apple.
The folks at iLounge now have word that Microsoft revealed details about second-generation Zune devices at an event for developers. iLounge says Microsoft previewed a flash-based Zune, and that the device was bigger than what some expected. "It's physically larger than the iPod nano, and apparently not anything amazing: 'not bad' is how we've heard it described," iLounge explains.
The site has also heard that the second-generation hard-drive-based Zune will have an even larger display than the existing device, and that it will likely have higher storage capacity, as well. No specific prices or release dates appear to have leaked out yet, but the rumors we heard last month suggest that both new Zunes may be out by the holiday season.