Microsoft sets price for Zune2006-09-28 14:56 by sava700
Microsoft Corp. said 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 market-dominating iPod after conceding a five-year head start to Apple's media player. 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. "We had to look at what was in the market and offer a competitive price," said Scott Erickson, Microsoft's senior director of product marketing for Zune. "We're not going to be profitable this holiday but the Zune project is a multiyear strategy." more: http://www.cnn.com/2006/TECH/ptech/09/28/microsoft.zune.reut/index.html
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