Microsoft (MSFT) to launch new Zune -- is anyone listening?

As reported on Engadget yesterday, Microsoft Corp. (NASDAQ: MSFT) is set to launch a newer, slimmer Zune digital media player in November. It's adding two new products to the Zune ecosystem as well, both of which are based on flash memory instead of using hard drives. In essence, Microsoft is trying to catch up, once again, to Apple, Inc.'s (NASDAQ: AAPL) iPod lineup, the most recent of which was announced and subsequently launched about a month ago.

Microsoft's more fascinating products out of the new lineup are the slim, flash memory-based devices. These new Zunes will come in several colors and memory capacities, with a 4-gigabyte version selling for $150 and an 8-gigabyte version running at $200. These are the exact same price point Apple has on its new iPod nano products.

Microsoft is touting the term "Zune" as more than just about the player devices themselves, but is trying to market the brand in a way similar to the iTunes atmosphere most iPod owners use to download music, movies, TV shows, podcasts and other content. Microsoft is doing one thing different, though -- it's adding a "social network" concept to the Zune atmosphere and pushing that concept with built-in wireless internet capability on all new players. Also, the Redmond giant is relaxing some of the song-sharing restrictions that have hampered wireless networking capabilities in the first generation of Zune players released last year. The large question is this: will the Zune ever be able to compete with the iPod, on any level and at any price? Round two is about to begin.