With new iPods just around the corner – or so rumors claim – Microsoft has decided to spill the beans on the latest update to their line of Zune portable players. According to Cnet, Microsoft will beef up Zune’s capacity, expanding the hard drive-based model to 120GB and the flash-based player to 16GB.

The Zune refresh isn't about new hardware, though, rather about new social-networking features. Most notably, Zune owners will now be able to use the device's built-in Wi-Fi to download songs, and they’ll also receive recommendations based on what they and other users listen to. New Zunes will come with two games – Hexic and Texas Hold 'em – and add support for audio books in the Audible format.

Microsoft plans to charge $249 for the 120GB model, $199 for the 16GB model and $149 for the 8GB flash model, with the new devices expected to become available on September 16.