You know that unannounced next generation Zune player (which has been dubbed by some as Zune 2.0) that everyone seems to know about yet Microsoft keeps denying? Well, it appears the player has hit a small design snag causing delays in production. The folks at Zune Scene are the ones responsible for this report and have this to say (thanks to one of their Microsoft insiders of course!)

According to our source (from inside Microsoft) Draco production began July 23 as scheduled. Scorpio ran into trouble and production was delayed. A significant percentage of the hard drive based Scorpio units were experiencing continuity problems between the flex cable and pcb. In other words, a wire was coming loose. Our source went on to explain how there were emergency meetings and a new flex cable design will be implemented. The new cable will have a “S” shape (not a folded accordion shape). It should prevent tension build up during assembly and solve the problem.

Zune Scene also continues on to say that the original production run for the new Zune was going to be August 31st. This has since been pushed back to September which means the Scorpio device is probably slated for at best the end of October but probably November.

[Check out the Zune Scene article]

[Check out the Wired.com article]

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