While Apple is rumoured to unveil a completely new iPod nano in September, it appears that Microsoft will also announce updates to its Zune players. But these will be much more modest, consisting primarily of capacity upgrades. Citing a Canadian source, Zunited reports that Microsoft will soon release a 120GB Zune, something that has already been confirmed, as well as a 16GB flash-based Zune. Pictures show that both look very similar to the current designs but with a glossy finish.
Microsoft has indicated in the past that it is planning both new software and new hardware sometime this fall.
The 120GB Zune also received FCC approval earlier (The link will open a PDF document).