Microsoft fo Unveil Zune 2 on Tuesday

Microsoft is set to unveil the second generation of the Zune tomorrow, including the first flash-based Zunes.

According to sources close to the situation, both Microsoft chairman Bill Gates and Design and Development chief J Allard will be on hand for the event. The main part of the announcement will center around the players, which will include the first flash memory based Zunes.

Entering the flash-based device market is very important for Microsoft, as the category is by far the most popular. While the Zune has managed to grab a 10 percent share of the HDD player segment, overall that has amounted to about a 3 percent share of the market in general.

Despite the 10% market share among HDD players listed above, many analysts label the Zune as a flop.  Still, with the release of the second-generation player, it seems clear Microsoft has a long-term commitment to the product.