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J Allard, a Microsoft Corporate Vice-President, said on Tuesday in an interview that the company opted to go with Toshiba's 30-gigabyte player last year because it needed to rush to market with its first product.
This year, it decided to bring all the design in-house and selected Flextronics for the manufacturing.
"To build this product, we really needed to think about it end-to-end," said Allard, who runs the Zune business. "It also brings with it cost advantages."
Microsoft said it will start selling three new Zune models in mid-November. The 4-gigabyte, 8-gigabyte and 80-gigabyte Zunes will all come with a new feature that allows a user to wirelessly and automatically sync media via a WiFi network from a PC to the Zune when its battery is charging.
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