What are firmware upgrades?
The operations of your Zune player is controlled by its operating system, which is stored on firmware on the device. Firmware differs from hardware, in that firmware can be updated over time. Microsoft plans to release firmware upgrades to Zune, that will expand functionality or introduce enhancements. The firmware upgrades can occur automatically, when you sync your Zune with your PC. Microsoft has successfully implemented firmware upgrades with Xbox, and appears to be planning a similar model for Zune.