Microsoft, makers of the Zune portable media player, announced a firmware update today, along with announcements of lower prices for the devices.

The 3.1 update features some new free games, refreshes the Zune Social, and adds incremental updates to the Zune software. Games in this update include Checkers, Sudoku, and Space Battle. A multiplayer mode for the Texas Hold’em poker game are also part of 3.1.

The Zune Social refresh purports to make navigation easier and includes a “like minded listeners” feature, comparing your musical tastes with others. The incremental software update improves overall software stability.

Also announced today: Zune price cuts, which take effect Wednesday (Friday in Canada). The new prices (and comparisons to similar capacity iPods), according to MobileDevicesToday:

16 GB: Zune, $179; iPod $199
8GB: Zune, $139; iPod $149
4GB: Zune, $99; no similar model iPod

The update is available now free to Zune owners. The last major update was the 3.0 update in September.