Apparently, Microsoft is working on a thinner version of its Zune device, but with larger storage capacity. According to ZuneScene , a second Zune may be in the making too. It reports that a flash-based version of the player is to be introduced in a bid to compete with Apple's iPod nano and iPod shuffle .
The Flash Zune is said to measure 3 x 1.25 x 0.25 inches (compared with 4.4 x 2.5 x 0.58 inches for the original device), which makes it slightly smaller than the Apple iPod nano, which measures 3.5 x 1.6 x 0.25 inches. The Flash Zune will also have integrated Wi-Fi and video capabilities. Both players are reportedly to be launched some time this year, which presumably means in the US market only.
Rumours are also milling that a new pink version of the Zune is also due for release, possibly this week or early next. Currently available in white, brown, and black, the Zune will also be available in baby pink, and watermelon red too, the Zune team reportedly told ZuneOnline .
Microsoft was keeping very schtum when we tried to get some comment out of them.