Microsoft has announced the pricing of their new mp3 player, the Zune. The price of the wifi mp3 player will be $249 and the price of a song will be $.99. This should make it quite competitive with Apples iPods. Here is an article from Reuters on this announcement.
"SEATTLE (Reuters) - Microsoft Corp. said on Thursday its new Zune music player will be sold at a price matching Apple Computer Inc.'s market-leading iPod and, as a result, lose money this holiday season. Microsoft's 30-gigabyte Zune will retail for $249.99 -- 99 cents higher than the iPod with the same amount of storage -- when it goes on sale November 14. Songs available for download at the Zune Marketplace service will cost about 99 cents a song, on par with prices at Apple's iTunes, Microsoft said. The world's largest software maker faces an uphill climb in trying to topple the popular iPod after conceding a five-year head start to Apple's media player. The Zune aims to compete on features, not price, said an analyst. "They're not getting into a pricing war," said Michael Gartenberg, an analyst at technology and media research firm JupiterKagan Inc. "It will be a competition of features versus features, form factor versus form factor, winning the hearts and minds of consumers with something other than price," Gartenberg said. Microsoft said it needed to put a comparable price on Zune, even if it meant that the company will suffer a loss from the device's sales this holiday season. (READ MORE)"
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