Microsoft Zune: A Threat to iPod?

Bill Gates, Chairman of Microsoft Corp. and Corporate Vice President J. Allard announced an updated version of Zune, a portable digital media player, on Oct. 2.

Similar to Apple's iPod, Zune plays music, pictures, videos, displays images and is able to receive FM radio.

The new Zune includes the ability to sync wirelessly over the owner's home wireless system and includes a new touch pad device.

Microsoft has come up with three new models for this digital media player. The updates include a sleek, black Zune 80 GB hard-drive model which has a bright 3.2 inch screen, the ultraportable Zune 4 GB, and the Zune 8 GB flash model available in new shades of pink, green, black, and red. They all have the Zune Pad navigation button with a touch-sensitive surface.

In addition, all existing Zune owners will be automatically updated with the new features as well as the new device software coming out this fall.

Along with the new Zune is the Zune Marketplace which will be available in mid-November.

This online music store will offer more than three million songs and video podcasts.

The layout of this online store has been visually updated, making it more interesting and much easier to browse. Also, by purchasing a Zune Pass, subscribers will be able to download as much music as desired for a monthly rate.

Another new feature of Zune is Zune Social, a beta online community website which allows people to share their musical taste, knowledge and experience with others.

Similar to websites such as Myspace, users can create a friends list, post comments on one another's profile page, message other users, and even send song links.

Anyone can create a free Zune Card which will automatically let them know about updates and most recently played tracks and highlights.

Although Zune has been updated and has better features than before, it is still no match against Apple's iPod.

The iPod consists of more than 70 percent of digital media players sold nationwide, according to analysts and consumers.

Microsoft says it sold more than 1.2 million Zunes last year in contrast to the 41.4 million iPods sold just from October 2006 to this past June. Overall, Apple has sold over 110 million iPods since the product first went on sale in 2001.

Despite these figures, Chairman Bill Gates hasn't given up, stating, "We think the same kind of things in terms of persistence and innovation can apply in this connected entertainment area," according to The Wall Street Journal.