MS confirms 120GB, 16GB Zunes, plus Wi-Fi music store

On the eve of Apple's "Let's Rock" iPod event, Microsoft went ahead and uncorked details on its fall Zune line, including bigger HDD and flash Zunes, wireless access to the Zune Marketplace, the ability to buy songs your hear on the Zune's FM tuner, and price drops all around. Sorry—no ZunePhone.

If you've been keeping up abreast of the latest Zune rumors (Microsoft decided to make its Zune announcements early because of a leak on the Fry's Electronics Web site), you already know the salient details: a 120GB HDD Zune ($250, same price as the 80GB model) is on tap, along with a $199 16GB Flash player (in black and cobalt blue—cool).

The 8GB player will fall to $149 (from $199), while the 80GB (now $229) and 4GB players (dropping to $129) will be discontinued once supplies run out.

So, um … that's pretty much it on the hardware side (expect the new players to trickle into stores over the coming week).

As far as software goes, here are the biggies. First up: At last, you'll be able to buy songs from the Zune Marketplace over your Zune's Wi-Fi antenna. The upcoming Zune firmware (due Sept. 16, compatible with all Zune models) will let you browse, search for, and buy top hits, new releases, recommended picks … you name it. If you have a Zune Pass subscription, you'll be able to refresh your playlists and/or stream tunes directly over Wi-Fi. Good news—but long (and almost painfully) overdue.

Also coming next Tuesday: The ability to buy songs you're hearing over FM radio, so long as the FM station you're tuned into uses Radio Data System or RT+ data feeds to identify songs. If your Zune is connected to a Wi-Fi hotspot, you'll be able to buy and download the song then and there; if you're not, the song gets added to a shopping cart, and you'll get the chance to download once you're back in Wi-Fi range.

Zune owners will also get some games—well, two of them, at any rate: Hexic and Texas Hold 'Em. The games will arrive with the firmware update; more could arrive on the Zune Marketplace "in the future," I'm told, but no concrete timeline for now.

Finally, audiobook support is on the way—again, a feature that's been a long time in coming.

Tweaks to the Zune desktop client are also set for next week, including programmed "Channels" (such as the Billboard Top 100, and tunes hand-picked by the likes of KEXP radio and—gulp—Ryan Seacrest) plus user-centric music "Picks" (essentially music channels built by a recommendation engine). There's also Mixview, a groovy graphic UI that helps you find new music based on your favorite artists. Finally, you'll be able to "subscribe" to the tunes your friends have been playing recently—just drag their Zune Cards onto your player using the Zune software.

OK, but what about some movies to join the TV shows on the Zune Marketplace? Or, say, the ability to transfer rented movies (or purchased TV shows, for that matter) from Xbox Live to your Zune? Or what about transferring tunes from your Zune to the Xbox (and yes, I mean transfer, not stream)? All good ideas—and oft-discussed, according to the Zune reps I met with today—but "not yet." Predictably, licensing deals (or the lack thereof) with the various movie studios, TV networks, and music labels stand in the way.

Oh, and about that rumored Zune phone? There are "no plans" for one, at least not now—although again, my Zune reps didn't rule out the idea. (If it does happen, it sounds like Microsoft would leave the hardware up to third-party manufacturers, such as Samsung, HTC, etc.)

So, what do you think? Excited? Underwhelmed? Think the Zune guy will come around (or is gone for good)? Fire away.

Correction: In my original post, I wrote that the new HDD-based Zune would have a capacity of 160GB; in fact, it's 120GB. Apologies for the error.