80GB Second-Gen Zune on the Way?

Often forgotten amid all of the iPhone hype, Microsoft, too, makes a portable music player that is holding its own in the marketplace - at least for a first generation product. The company is now reportedly preparing a second revision called the "Scorpio" with an 80GB hard drive, which will join a new flash memory based Zune dubbed "Draco."

According to Web site ZuneScene, Scorpio will enter production at the end of July, which means consumers could see both new Zunes in time for the holidays. Although it remains fair behind the iPod in market share, Microsoft is happy with Zune sales and expects to sell 1 million devices by the end of the month. According to retail statistics, the pink Zune helped keep sales reasonably high during the spring season.