This is horribly irresponsible rumor-mongering, but we over heard this tidbit about the Zune over at GDC. Apparently, if the person was correct and our ears didn't fail us, the next-gen Zune will be available in August. Unfortunately for the first-gen Zune team, the next version will feature gaming, which is supposedly making them feel dejected over working on a product (1st gen) that will be "abandoned".
Couple that with this quote from the Zune Release manager over at Zuneinsider about Microsoft NOT abandoning the Zune, and you have a potentially juicy rumor.
And Now a Word from the Zune Release Manager [Zune Insider]