Microsoft says it's setting up a new factory in China to stamp out the millions of revamped Zunes brand loyalists will no doubt demand. First-gen Zunes have been made by Toshiba, but Gates & Co. say they want to take a more direct role with the sequels, so they're building a fabrication plant in conjunction with a contract manufacturer (most likely Xbox maker Flextronics).
Marketing chief Jason Reindorp wouldn't spill any beans on what's new about the new Zunes, other than to say they'll be available in a range of storage capacities.
Microsoft delves further into manufacturing with Zune plant
[MarketWatch]
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