BetaNews claims that Microsoft will be introducing the Zune 2 on Tuesday.
The second major revision to the Zune music player will introduce flash-based players.
Entering the flash-based device market is very important for Microsoft, as the category is by far the most popular. While the Zune has managed to grab a 10 percent share of the HDD player segment, overall that has amounted to about a 3 percent share of the market in general.
The main design of the hard drive based Zunes are expected to be similar to current designs (but thinner). The flash-based players, however, will measure 3" x 1.25" and look similar to the iPod nano. The flash Zunes are also said to support Wi-Fi and higher storage than competing products.
The new Zunes are expected to be available in November.