This news is from a credible source, Cesar from Zuneinsider confirmed on his blog that the new retail price for Zune would be $199.

He said they having been thinking about doing this for a while as around 94% of people polled found the price to be on the higher side.

Now with the new price more people would enjoy the Zune experience. On the other hand we still don’t have any information on the new Zune or any new updates.