From Gizmodo:

[...] Apparently, if the person was correct and our ears didn't fail us, the next-gen Zune will be available in August. Unfortunately for the first-gen Zune team, the next version will feature gaming, which is supposedly making them feel dejected over working on a product (1st gen) that will be "abandoned". [...]

Maybe this rumor come true, but all the previous info we had on the topic is contradicting to this rumor. The next generation Zune is supposed to be released at the end of 2007 and gaming support for Zune is expected in mid-2008.

Also in a comment of Zune's Release Manager, Zune Generation 1 won't be abandoned for the sake of a new release.

GDC (Game Developers Conference)

[via Gizmodo ] 

Related articles:
Release Manager: not forgetting generation 1
CES 2007: Zune gaming by July 2008
European Zune: a new version
Zune Flash Memory Players