Microsoft's answer to the IPod: Zune

Microsoft's Zune portable device and music service was released in the US market on November 14th with a price tag of $249.99 and is slated to release in the European market by late 2007 or early 2008.

The Zune comes equipped with a 30GB hard drive and its features include WiFi, a built-in FM Tuner and a bright 3-inch screen, which can be customized. Zune, at this early stage, comes in three colors: black, brown and white.

With Zune to Zune sharing, a consumer can share songs, recordings, play lists or pictures, with friends. Zune has accessories like the Zune Car Pack, with an in-built FM transmitter, the Zune Home A/V Pack that integrates Zune with TV and music speakers and the Zune Travel Pack to keep family and friends entertained on the road.

Microsoft is now entering into the digital entertainment space with Zune and is attempting to break into the $4 billon US market for portable music devices.

The company is planning to add a video sharing feature to the Zune player in addition to combining the device with a phone, said Steve Ballmer, CEO Microsoft, to Bloomberg, without giving any time frame.

Ballmer wasn't too worried about Apple's dominance with 75 per cent overall sales, "I'm confident we can keep up. They have brand and image going for them, and we have some innovative ideas."

"The digital music entertainment revolution is just beginning," said J Allard, vice president, design and development at Microsoft, and that's a change that plays to Microsoft's strengths.