Software giant Microsoft has upped its game in the portable music player space, giving the Zune device new features to better compete against market leader Apple.

A new firmware update to be released next week will allow US Zuners to tag songs they hear over the device’s FM radio for later purchase.

New features will allow users to browse for and download these tracks at any wifi hotspot, bringing the ‘also ran’ device up to speed with its larger competition.

According to research from Microsoft itself, an estimated 61 per cent of consumers discover new music by listening to the radio, which is where the idea for the FM radio tagging and buying system comes from.

The company said that 450 radio stations will support the tagging system at launch.

Zune Pass subscribers can download or stream music to the device or their computer interchangeably, for a flat rate of $14.99 per month, or tracks can be purchased individually.