Microsoft unveils details of its upcoming Zune media player

Microsoft has now confirmed details of its upcoming Zune portable media player that will take on the iPod.  The Zune will feature 30GB of storage, a 3" display, an FM Radio tuner, built-in Wi-Fi and comes in a colour choice of black, brown or white.  The player will be pre-loaded with a variety of songs from record labels such as Virgin and Ninja Tune.  Microsoft has mentioned that it will become available for holiday season, but has not provided any pricing information yet. 

Its music service, Zune Marketplace will offer a similar service to existing Windows Media driven services where consumers can purchase songs individually, by the album or download unlimited tracks with a "Zune Pass" flat subscription fee.  Users can share songs, playlists and pictures to another device over Wi-Fi and the songs received can then be up to three times or for three days before the user is prompted to purchase the songs.  Microsoft aims to use this feature to make the Zune 'stand out' from the competition.

According to data from the NPD Group, Apple currently accounts for 75% of the MP3 player market and according to data from Nielsen Soundscan, Apple's iTunes Music Store accounts for a whopping 88% of the legal music download market.  Microsoft has tried working on many improvements to its Windows Media technology that is implemented in 'PlaysForSure' compliant MP3 players and used by many online services, but proved unsuccessful in taking on Apple.  As a result, Microsoft has decided to start offering its own media players and music service; however Microsoft has already cautioned financial analysts that it will take several years and hundreds of millions of dollars of investment for Zune to start taking ground.

Microsoft Corp. Thursday morning confirmed details and showed the first official images of Zune, its portable media device that will challenge the iPod.

The company said the first Zune will be a 30-gigabyte model with a three-inch screen and an FM radio tuner, available in black, brown or white.

Built-in wireless technology will let users share songs from device to device.

Microsoft did not name a price for Zune, which is slated for release later this year. Apple sells its 30-gigabyte iPod for $249.

Some further info can be read on SmartMoney here.

As the iPod has reached a stage where most consumers assume that a portable music/media player is an iPod and no other player or service has made much of a dent in Apple's market, Microsoft will surely need to come up with a well planned strategy to convince that an iPod is not the only thing capable of playing music and video on the move.  In my opinion, the Wi-Fi feature will likely be more of a gimmick, particularly since consumers are unlikely going to start sharing music with their friends knowing that they will only be able to listen to the transferred tracks a few times.

Source: Seattle Post-Intelligencer

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