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Microsoft has released firmware version 3.1 for all models of their Zune MP3 players.
The 3.1 update adds three new games: Checkers, Sudoku and Space Battle. A new multi player mode for the existing Texas Hold ‘Em card game has also been added. The multi player mode uses the Zune’s Wi-Fi, letting players connect to each others Zunes. The new Checkers game also supports multi player.
The Zune Social online community was refreshed with a little UI visual action and a new feature called "like minded listeners," was added. The feature allows you to see the Zune cards of those with compatible music tastes.
The Zune PC software received an update too which includes software stability patches and performance improvements. To download the free Zune software and firmware update, open up the Zune PC software, click on Settings, and select Check for Updates.
Separately, Microsoft also announced price cuts for the Zune range. In an interview with Cnet, Zune marketing director Adam Sohn said moves were being made to "ensure hopefully we have a good holiday season." The prices put Zune’s flash players cheaper than Apple’s iPod Nano range.
The prices are as follows:

• Zune 4GB: from $129 to $99, a saving of $20
• Zune 8GB: from $149 to $139, a saving of $10
• Zune 16GB: from $199 to $179, a saving of $20

Screenshots of the new Zune games Soduku, Space Battle and Checkers can be found below:

It has been long rumoured that Microsoft would introduce Zune software onto the Windows Mobile operating system.

In an interview with CIO magazine Steve Ballmer confirms that Microsoft is looking to port the software to Windows Mobile devices.

When questioned why Microsoft developed the zune, Ballmer replied:
"At the end of the day, one of the big trends is that all content is going digital. And if we don’t have the software and services that are useful, helpful and valuable for the consumption of music and video, we are sort of not really a player.

Now, we built the Zune hardware with the Zune software - and what you’ll see more and more over time is that the Zune software will also be ported to and be more important not just with the hardware but on the PC, on Windows Mobile devices, etc."
This is the strongest indication that Microsoft will be porting the software. We’re not sure when exactly but you can bet that Windows Mobile 7 will have it included.

Zune owners now have free wireless access in 9800 McDonalds in the US.

Microsoft today posted the new Zune 3.0 software, providing new features for all Zune models, including the original first-generation Zune. The software wireless music downloads and purchases from the Zune Marketplace, the ability to tag and purchase songs played on the built-in FM radio, the new Zune Channels, etc. Microsoft also revealed new Zune colors and announced that Zune owners will have free wireless access in 9800 McDonalds restaurants across the country.

Zune 3.0 zoomes to Zune owners as a 30 MB download, which installs a new version of the Zune media jukebox application on a PC and updates the firmware on Zune players. The two separate installs work in tandem to enable new features like the ability to wirelessly stream and download music from the Zune Marketplace store on the go and “Buy from FM” feature that enables Zune users to tag and purchase songs from the built in FM radio, directly on the device. Microsoft also included free Wi-Fi access in 9800 McDonald’s fast food restaurants through ISP Wayport, mirroring a similar deal Apple has in place with Starbucks.

Other new features include Zune Channels, a podcasts and playlists mashup that allows users to subscribe to channels such as Billboard, The Fader, radio station channels and celebrity channels. New music is pushed to subscribers’ collections each week. Zune 3.0 also comes with two games, highlighting Microsoft’s first careful steps to enable gaming on its Zune players.
All Zune devices can take advantage of these new software features, including the original Zune model. Users simply download and install the new Zune 3.0 software, connect the media player to their computer and let the Zune jukebox software automatically update device firmware. The Zune 3.0 software is a free download and requires a free Zune account to enable access to the Zune Marketplace content. Users who have registered for a Windows Live ID account before can use this account as their Zune account.

Read more @ tgdaily.com