Microsoft unveils wireless iPod killer

Reuters REDMOND (WASHINGTON)

MICROSOFT unveiled on Thursday its new Zune portable media player, hoping its ability to share music wirelessly can win over consumers despite its late entry five years after Apple’s market-dominating iPod. The world’s largest software maker said the music player is the first step in creating a whole brand of portable devices, and a Zune mobile phone is also in the company’s plans.
Microsoft said it will launch a 30-gigabyte Zune and an iTunes competitor called the Zune Marketplace in the United States this holiday shopping season. The new rectangular player, which was handed to reporters at a news conference, is similar in appearance to the iPod, with a round click wheel but a larger 3-inch screen. The Zune comes in black, white and brown.Microsoft did not give a launch date or pricing, but said the Zune’s wireless connectivity feature, which allows users to beam photos and songs to one another, will differentiate it from Apple Computer’s popular iPod.
Analysts said the wireless feature, currently unavailable in the iPod, will attract some customers but market share gains will probably come at the expense of other music player makers like Creative Technology and SanDisk Corp.
“Zune isn’t an iPod killer but it does offer some compelling features that Apple currently lacks,” said JupiterResearch analyst Michael Gartenberg. “It still looks like short term market share will come from other device vendors, not Apple.”
The Zune, along with the Xbox game console, is part of Microsoft’s strategy to diversify beyond its core desktop computer business, which is facing competition from Web rivals like Google.“Microsoft has to stay relevant to how people are accessing information and entertainment.