Microsoft showed off a black 80-gigabyte hard-drive model, slimmer than last year's 30 GB Zune, with a larger 3.2-inch screen. The company will also sell a smaller, flash memory-based Zune, similar in shape and size to the iPod Nano, in pink, green, black and red with 4 GB and 8 GB of storage.
Like the original Zune, the new models include an FM radio tuner and the ability to share songs with other Zune owners wirelessly.
This generation sports a new navigation button Microsoft calls the Zune Pad, and uses Wi-Fi to sync music, movies and photos wirelessly and automatically with users' home computers.
The new Zunes are set to go on sale in mid-November. The 4 GB Zune will cost $149, the 8 GB will sell for $199 and the 80 GB model will cost $249.
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To get its first-generation Zunes to consumers quickly, Microsoft linked up with partners like Toshiba and MusicNet for the design of the device and the underlying software. This time, the company has bulked up its staff to include industrial designers, and rebuilt the software for the device and the computer from scratch.