Microsoft has just unveiled the new Zune line-up featuring a flash-based version and a redesigned 80 GB version simply known as the Zune 80. The Zune 80 is slightly thinner and smaller than the 1^st gen Zune and now sports a much larger 3.2-inch display protected by glass. For now, it is only available in black, but more color variants are said to be in the works for future release.

The flash Zunes will come in two variants: a 4 GB and 8 GB model which are aptly named the Zune 4 and Zune 8, respectively. It comes equipped with a slightly smaller 1.8-inch display compared to Apple’s new iPod Nano which has a 2.0-inch beauty. Both models will be available in pink, green, black and red. For a complete head-to-head comparison of the iPod line and Zune family, head on over to Engadget where they have a specification showdown between the two rival camps.

Wifi is still included as well as a new Zune pad design and support h.264, MPEG4 and WMV video formats. For previous Zune owners, they can avail of these latest improvements via software update so they’re 30 GB Zune (now known as the Zune 30) won’t completely be outdated. Pretty good move on Microsoft’s part to keep past and new customers happy with these new gadgets, but I reckon it will take more than a few eye-candy devices to knock Apple out of the top spot.