New Zunes coming before Christmas

Microsoft Zune

Now that Microsoft has sold its first million Zunes in its last fiscal year, it’s time to focus on Year Two. A Microsoft representative has indicated that Microsoft will update its Zune lineup in time for the holiday season. Microsoft’s strategy will cover three major areas.

First we may see new devices. We have already heard rumours of a Flash-based player (codenamed Draco) and an 80GB hard-drive model (codename Scorpio). Are other devices still lurking in the Microsoft labs?

Second is new or enhanced features that will allow the Zune to match or exceed the iPod’s capabilities. This could include video, podcasting, improved wireless functionality and more.

Third, Microsoft plans to expand availability of the Zune beyond the US when they can ensure an offering which is tailored to that market. Which countries and when remains unclear.

None of this leads me to believe that Microsoft will be able to make any sizable dent in Apple’s iPod domination.

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