Zune 2 rumors have been doing the rounds for months now. This time, an insider source for Zune Scene forums has reportedly confirmed that Microsoft's first hardware makeover for the Zune is due in October.

There will be two main versions of the player, a flash-based device in 4GB and 8GB and a larger HDD model offering 80GB capacity. All new models will drop the iPod-like circular control pad in favor of a what the company is calling the “squircle”, which is a square with rounded edges that users can push from any side to navigate the controls.

The new the lineup should closely reflect the prices and feature set of what Apple offers. However, no details were revealed on whether online music store access and web browsing features will be added to match the new iPods. The second-generation Zune is in "product validation" stage, according to the source, and is scheduled for an October 16 launch.