Microsoft is still toiling away at the Zune, but there isn't a whole terrible much to show for it so far in regards to market impact. They just broke the 2 million mark, almost a year after they hit 1 million in May 2007. That means growth has hardly accelerated since the second-gen players hit the scene. Zune's overall market share has grown from three to four percent, but that's most likely a steal from Creative (which sunk from four to two percent) than a steal from Apple or second-place SanDisk (with a billionty and 11 percent, respectively). But don't worry, we're sure that 2.5 update is going to change everything.

Ever wonder where Zunes are designed? Well, right now it's all done in a fairly non-descript and temporary office building on Microsoft's sprawling campus in Redmond. (Soon enough a few hundred Zune employees will be packing up and moving to a new building that's currently under construction, though.) We recently got a chance to peek around the cube farm and spend some time with employees in the laid-back Zune lounge -- check it out!

Well, that was fast, the XNA community technology preview with Zune games we were just talking about is already out. Unless you're a developer ready to get your hands a little dirty it won't be of much use though, especially since games can only be distributed and installed from source code right now.

Read - Official announcement
Read - How-to install Zune games

Microsoft's recently refurbished Zune store features a lot of NBC content like Heroes and The Office, but it looks like it may have come at what could be a steep price: NBC recently told the New York Times that it's working with Microsoft to develop "copyright filters" for the Zune that would "remove pirated movies and videos." (We'll pause for a moment so you can gape appropriately.) Granted, it's not clear whether NBC wants to actually delete non-DRM'd media or simply block playback, but apparently the network thinks it's an issue on par with variable pricing, and it's not in the iTunes Store because Apple refuses to cooperate. Microsoft, on the other hand, is apparently cheerfully working on such a solution, dubbed the "copyright cop," and says that it's sympathetic to NBC's concerns because it also suffers from piracy issues. Sigh. Of course, none of this is new territory for NBC or Microsoft: the two companies are working in similar content filtering systems to be implemented at the ISP level with AT&T, and NBC and SanDisk are working on a filter for Sansa players as well. Still, if Microsoft is serious about competing with the iPod, signing up for consumer-hostile DRM systems that actually block playback and potentially delete files just isn't the way to do it -- let's hope this one dies on the vine.

Update: Although a spokesperson told the NYT that Microsoft was working with NBC on anti-piracy efforts, the company is now saying that it has no plans to implement a "copyright cop" in the Zune, and the Zune Insider blog confirms. Great, now just cancel the ISP-level filtering system and we'll be all set.

Hear that? That's the sound of dozens of Canadians rejoicing as they finally get a launch date for the Zune in Canada, a year and a half after Zune's debut in the US. As rumored, Canadians will have a slightly limited lineup on offer, with no 30GB or green versions to puzzle over, but the red Zune 80 will indeed be making an appearance, along with the rest of the players. Prices range from $140 to $250 Canadian Dollars, which sources tell us is a real currency akin to salt traded by the ancients or a Starbucks Card.

While we're still waiting for the early year flirtations of NBC and Apple to sprout into a renewed relationship, it looks like Microsoft is picking up the ball and running with it. The new Zune Marketplace TV lineup includes NBC favorites "The Office, "Heroes" and "30 Rock," in addition to popular shows from Comedy Central, MTV, VH1, Nickelodeon, and Sci Fi Channel. Over 800 episodes in total are available at the moment, and all of them are going for 160 Microsoft Points -- about $2.00. A more complete list is after the break.

Microsoft has quite a bit in store for the Zune faithful with its new Zune version 2.5 software update. The high points are the new Zune Card integration and the addition of TV show downloads on Zune Marketplace, but much-requested features like gapless playback, improved syncing controls, meta data editing, auto playlists and other tweaks have also been included. On the marketing front, Microsoft is really pushing the Zune Pass going forward, and will be launching a new TV commercial to help plug it. Subscribers will particularly benefit from the new Zune Card sharing, which lets you automatically score copies of your pals' favorite songs, artists and recent plays -- non-subscribers can view that Zune Card info, but will have to buy the tracks if they want to have a listen. Unfortunately, news on the video store front isn't so compelling: Microsoft is only adding TV shows at this point, no movies, and there's no way to pull video you've bought on your 360 over to your Zune. There's no reason Microsoft can't close this loop and turn some scattered media offerings into a compelling ecosystem, but until then we suppose we'll have to thank our lucky stars that we can shell out 160 MS Points ($2.00) for TV shows we can watch for free online. The 2.5 Spring Update is a free download and should be available nowish.

Microsoft's still isn't solid on a final consumer release date for XNA games for the Zune, but they are aiming for the first CTP (community technology preview) to be released in May. We also learned that Zune games can support ad-hoc wireless play with up to eight players, the devices won't support any hardware 3D acceleration, the "16MB for storing games" we heard before actually refers to how much Zune RAM games can take over, and Microsoft's got at least four games running on the platform (which may or may not ever be released to the public): Zauri (which we've already seen -- video after the break), as well as Hexic, Potato Chase, and Alien Takeover.

Just hold on a little while longer, Canadian Zune-lovers -- it seems that your wait is almost over. A job listing just popped up on the Vancouver Craigslist, looking for a "Microsoft Zune Program Coordinator" who will "represent our client Microsoft on their launch of Zune in the Canadian marketplace." The job calls for applicants to be available between May 12 and June 20, so if it's legit -- and we hope it is, just because we prefer to believe no one is sad enough to fake this -- it looks like the Zune will finally roll into Canada in just a few weeks.

It might be in a slightly smaller posse, though: the crew over at ClicZune recently took a gander at Microsoft's Canadian Zune promo page and noticed that the Zune 30 and the green flash Zunes are conspicuously absent. (Also missing is the recently released red Zune 80, but that was announced after the pages in question were made.) It's hard to tell what this means -- do Canadians hate green things? Are the 30 and green on their way out in the US as well? -- but hopefully we'll get some answers in just a couple weeks.

[Via ClicZune, thx Penny]

Read - Craigslist ad
Read - Microsoft Canadian Zune promo page

Not unlike the early colorized versions of the original Zune before it, the red Zune 80 looks like it should finally be ready to make its un-tattooed retail sales debut . If you've been considering getting loud and/or proud with your next Zune, call ahead to your local gadget stock keeper and see if they're in.

Listen to the silence, let it ring on. Microsoft is said to be releasing a limited edition, Joy Division Zune featuring an adaptation of Peter Saville's pulsating cover art from the band's Unknown Pleasures debut. The launch is meant to parallel the June 10th release of the Joy Division DVD and could, in one fell swoop, lift the Zune above its L-7 image. Then we could go on as though nothing was wrong and hide from these days we remained all alone.

P.S. That's our mockup of what we hope the Joy Division Zune will look like.

[Via Wired, Thanks Rob H.]

By now you're probably aware of the Zune Guy's mission to change his name to Microsoft Zune, right? He's now documenting the entire process to the delight of amateur psychologists and identity thieves everywhere (seriously dude, at least edit out your phone number). You'll find step 1 of his vision quest -- a call into Microsoft to discuss the legality of the move -- recorded after the break.

Look, we know that our continued attention just rewards the monkey for his dance. But like any good car crash, our morbid curiosity won't let us look away. Especially when we learn that the Zune Guy drives a Ford Focus, just like Bill Gates. We're guessing that's not a coincidence. Click through for the action.

[Thanks, TomTom]

We can't say we'd follow in this guy's footsteps for any amount of money, but boy, does it make for fantastic drama. Shortly after the famed Zune Guy (you know, that cat with a trio of Zune-inspired tattoos?) decided to legally change his name to "Microsoft Zune," the plan was put on hiatus after hearing that it cost a whopping $500 to get a name swap. After getting curious, investigating and discovering that he only needed $150 to have it done, he put the mission squarely back on the front burner. Unfortunately, there still stands a chance of the aforesaid name being denied, so he's posted up a poll in order to let the general public give him a list of backups. Personally, we're feelin' McZunin.

[Thanks, Brian]

Good news for all of you who missed the red Zune 80 during its short-lived (and somewhat delayed) Valentine's Day cameo -- Microsoft has decided to take your money after all. Yep, the red 80 is back, and it looks like it's a permanent engagement this time. The only catch is that you've got to do it up Zune Original style, which'll set you back another $10 - $15 on top of the usual $249, but that's the price you pay to have your player match your kicks, Dr. Hipster McHip.

Update: Apparently the Zune Originals site will sell you a custom Zune without any customizations (who knew?), so it looks like you can get crimson on the cheap if that's what you're after. Dollar dollar bill, y'all. [Thanks Micheal and Mark.]

Seeing how long it took the Zune to make it over the northern border and into Canada, it shouldn't be any surprise that it's going to take even longer to get to Europe -- not until late next year, according to the director of Microsoft France. The wait should be worth it, though: that's when the third generation of Zunes will be released, as well as a Europe-friendly version of the Zune Marketplace. There are also some sketchy rumors that Windows Mobile 7 devices will be able to take advantage of Zune content and services, but it doesn't look like Microsoft has anything to say about that yet -- but if that goes down you know a Zune phone is right around the corner.

[Via Anything But iPod]