Alright finally we have something to write about which is not a rumor. It’s confirmed and definitely not about the zune phone, or the zune 2.0 or the Flash zune or regarding the Wi-Fi sharing of songs running firmware version 2.1.4 etc.

Microsoft will be manufacturing its own zunes in China, wait a minute isn’t zune from MS? Yes, but its build by Toshiba which is re-badged and repackaged and slapped with the Microsoft logo. So, will MS have any advantage?

As per Jason Reindorp, Microsoft’s marketing director for Zune, Yes. “There are definitely some cost efficiencies, but the more important thing from our perspective is the flexibility and control we have in creating a device from scratch and making it down to the last component what we want it to be.”

Now the big question, with this move MS will definitely be creating new zunes with new features. But what about the first gen zunes, will they be phased out, will they be compatible with the new features released. This will definitely be a big concern for the existing zune owners. What are your thoughts?