For those with current Zunes, the software will be available Sept. 16th. The new models will be priced as follows:

120 GB: $249.99
16 GB: $199.00
8 GB: $149.99

The older (and EOLed) 80 GB and 4 GB models will be sold at $229.99 and $129.99 while supplies last.

Some of the new features:

• Buy from FM, which lets customers tag and purchase songs they hear on FM radio stations directly from the Zune device. In order to do so, the radio station must transmit with RDS or RT+ data feeds.

• A Wi-fi music store for downloading from hotspots with a Zune Pass or per track payment.

• Channels, such as the Billboard Top 100, The FADER magazine and KEXP radio, in addition to workout-themed channels tailored for high, medium and low impact, and top chart channels from all categories.

• Personal Picks. The Zune software learns what kind of music users like and makes personal recommendations. Now where have we heard of that before (yes, we've heard it as a possible feature for iTunes 8).

• Two free games (Texas Hold ‘Em and Hexic)

• Support for Audible books.

It's all cool, but the Zune still doesn't have a browser. Figure out how you can get onto a hotspot that has an "interrupter web page" such as the kind I find at Panera Bread's free wi-fi network, where you have to agree to Terms and Conditions before being let onto a hotspot.

Even if it had a browser, somehow I don't think this would make much of a dent in the iPod's 71% market share, or bump the Zune's 4% market share.

This despite the new cool blue color (above).