Microsoft's Zune Ready For Launch

November 13th, 2006

Redmond, WA - Microsoft's Zune digital music player launches on Tuesday. It's Microsoft's new entry in the media player market.

Set to debut on Tuesday, the Zune has a lot of potential, analysts say. It should benefit from Microsoft's deep pockets and experience with the Xbox 360, which Microsoft also markets directly to consumers.

But for now, the Zune is likely to be little more than a niche product, they say. Apple Computer's iPods and iTunes dominate the market and won't be easy to vanquish.

"It will be hard for (Microsoft) to really make an impact" right away, said Stephen Baker, a consumer technology analyst with NPD Group in Reston, Va. But, he added, "Longer term ... they're likely the most significant competitor to the iPod."

Zune is clearly patterned after Apple's offerings. Like the iPod and iTunes, the Zune device and service work together and won't work with any other competing gadgets or services -- even those running Microsoft's Windows Media software. Instead, Microsoft is offering an all-in-one ecosystem that includes a player, music organization software and online store, all carrying the Zune name.