Microsoft has thought it over and they are not ready to give up on the Zune just yet. While we had been hearing a lot of rumblings that the Zune was on the hot seat during the recent cuts, it appears we will see new Zune models for the 2009 holiday season.

So, no matter what the nay-sayers and iPod fans say, Microsoft will again attempt to lure buyers over to the Zune platform with new models that will be a significant step up from the current Zune offerings, according to our sources.

Besides our moles suggesting that we will see a bigger effort to tie the Zune to the Xbox 360 and Media Center platforms with their own music and video store, it is likely that the next evolution will be in the area of a new touch screen-oriented Zune that can use Wi-Fi to communicate much like the iPod Touch. The tighter integration would perhaps allow purchased content to be passed from the Xbox 360 and Media Center platforms to the Zune for on-the-go use.

Games are the area that Apple seems to be making a big noise about, with the latest iPhones and the iPod Touch, so it might be that the next generation of Zune could be targeted at this, as well. From Microsoft’s extensive experience from the Xbox with a variety of software developers it might be quite easy to get developers to support and release titles for a touch screen Zune that offers advanced gaming abilities.

The problem with the Zune has never really been the device itself; it has been more about the applications and the way that it interacts with the outside world that is a problem. Also, the lack of deals has kept the Zune music store way behind iTunes. This will be an area that has to improve if Zune will really be able to make an impact.

If Microsoft were to release a touch screen Zune with more storage than the iPod Touch and more features, we are not even sure that they could do it at a price point that would make the device competitive. It is going to take some whiz bang features with something that offers much more than what Apple currently offers, and that is a tall order for Microsoft on a good day; but you have to admire Microsoft’s commitment to the platform and perhaps they know something that we don’t.