A New Zune Announcement Coming Later Today?

There is a rumor that Microsoft will be making an announcement tomorrow about a new Zune player. iLounge believes that the new Zune announcement will possibly be about a flash-based Zune which will compete head-on with the iPod. Engadget hopes that the new Zune will drop the DRM. I am speculating that there will be new color possibilities or an increase in hard drive capacity.

Currently Zunes are available in brown, black, white, and pink. The Zune is available only in 30GB sizes as of right now. Advantages that the Zune has over the iPod includes wireless sharing abilities and a built-in FM radio.

This announcement complements the news of Windows Live Hotmail releasing yesterday.

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