A representative for Microsoft Corp. reportedly said that the company is preparing to “expand” its Zune digital media player franchise. Even though no actual products were confirmed directly, the company indicated that broadening of the product family is a natural way of expanding Zune business.

“We have seen the rumors floating around, but we haven’t announced specific dates or details for the next generation of the Zune devices or service. That said, Zune follows the cycle of the consumer electronics cycle so you can expect an update later this year prior to the holiday season,” a Microsoft Corp. spokesman said in an interview with Whiz Byte web-site.

Microsoft indicated “three predictable paths” for Zune business expansion:

• Expanding the family: adding new sizes, styles and price-points.
• Broadening the feature-set of the device by building in support for video, podcasting, etc., but at the same time build on key differentiators, such as the wireless feature, the FM tuner and so on.
• Broadening of geographic markets by starting “to expand the international footprint of Zune over time”, but only when the company can ensure an offering which is tailored to that market.

Currently Microsoft is rumoured to unveil a version of Zune digital music player with 80GB onboard code-named Scorpio as well as flash-based Zune code-named Draco. Both models would not only expand the family of Zune devices, but would also appeal to different markets; for example, small flash-based players may gain popularity in price-sensitive markets. Broadening the feature-set of the device will also eventually put it into a more competitive position on new geographic markets.

Microsoft’s Zune player is available in three colours with a duotone approach on each. The device has a 3” screen, contain a 30GB hard disk drive as well as some functionality, not currently available on competing products, such as Apple iPod or Creative Zen, including ad-hoc music sharing between a group of people in the range of the device, FM as well as digital radio, thanks to Wi-Fi connectivity. The cost of the player is $249.