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Microsoft announced their new Zune hardware and the Zune 3.0 software updates today. It features a WiFi accessible music store and FM radio improvements.

The new Microsoft hardware consists of 120GB hard drive (US$249) and 16GB flash drive (US$199) models, with the same basic form factor. The 8 GB and 4 GB flash models cost $149.99 and $129.99, respectively.

Zune customers have a choice in how they acquire music. They can pay per track or choose a Zune Pass subscription. Zune Pass subscribers can download or stream music to the device or their computer interchangeably, all for a flat rate of $14.99 per month. So whether a device has 4 GB or 120 GB of storage, Zune Pass customers can access and stream millions of songs directly to their Zune.

The Zune PC software is a free download that provides discovery and media management. Mixview provides a visual mosaic of related music and listeners. The improved Now Playing view provides colorful effects, bio information and data from the Zune music community in a full-screen view.

The Zune software adds the ability to select a song for purchase that you hear on the radio, similar to the functionality you can get now with Pandora and Last.fm on the iPhone/iPod Touch. An FM radio tuner is built into the device. It uses the Radio Data System which sends time, track/artist and station identification using conventional FM radio subcarriers. HD Radio not required.

The ability to purchase songs or add songs from your Zune pass subscription right from the device is similar to what is already offered at the iTunes store using an iPhone or iPod Touch. Other additions include two free games (Texas Hold ‘Em and Hexic) and support for Audible books.

Zunerama has more information on the new Zune. The software and new devices are slated to be available on Tuesday, 16 September. No doubt, Microsoft would love to get it into Verizon and Sprint phones.

Tomorrow Apple announces new iPods and an update to their iTunes store. New iPod Nanos that do away with the ugly squat design, a revamped iPod Touch at a lower price, and a higher-capacity iPod Shuffle are expected. The event, which Apple has touted with the tag line “Let’s Rock”, will kick off at 1 p.m. EDT tomorrow.

Some may wait for T-Mobile’s HTC Dream, pretty much the most anticipated product launch in this half of 2008, says IntoMobile. It’s the first handset powered by Google’s Android OS and will feature Wi-Fi and an online store. Google’s Android Developer Challenge showcased twenty dev shops (and individuals) with a variety of compelling applications.

Of course it’s going to be relatively expensive at $399, require a T-Mobile service contract and could bomb. And don’t forget about the MIDs.

New Clearwire says it will become home to a broad range of devices, including those running Android.

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