Microsoft’s so-called “iPod killer”, currently known as “Zune” could be unveiled as early as late next month, with the company preparing to build momentum towards an October launch, sources close to the situation have told BetaNews. Stay tuned for more details.

UPDATE: Microsoft has officially acknolwedged the existence of Zune. The folks over at Engadget received the following news from Microsoft’s Marketing GM, Chris Stephenson:
“Today we confirmed a new music and entertainment project called Zune. Under the Zune brand, we will deliver a family of hardware and software products, the first of which will be available this year. We see a great opportunity to bring together technology and community to allow consumers to explore and discover music together.”
Read More [via Engadget]
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