I've been intentionally quiet on this so far; too much risk of leaking something inadvertently...not that I knew anything, it's all kept very hush hush! Anyway, I think Engadget has the best coverage here. My favourite quote though is from the Wired article...

As Chris Stephenson, the GM of Global Marketing for Zune told me, "Apple has established a benchmark for the industry. They've really brought the media player to the mainstream." But he still sees an advantage for Microsoft.

"We're not the hardware company they are," he said, laughing. "But then again, they're not the software company that we are."

NOW I get it...we can never really compete in terms of the cool new hardware, we're not that type of company but we can be amazing in software, integration etc...and you know what, I want to buy the new black Zune (I never really liked the original one)!