Microsoft Officially Launches Own MP3 Player In Attempt To Take Bite Out Of Apple’s iPod

When it comes to competing with the iPod, Microsoft is prepared to shoot for the moon.

Or at least the Zune.

That’s the name of the portable music device the software giant has now officially unveiled, as it seeks to get onboard a bandwagon that’s already filled to capacity.

For all its power and influence, Microsoft has been playing catch-up in the industry for a very long time. It was seen as being late on the importance of the Internet, tardy when it came to developing its own video game system and equally absent when online music and MP3s became the next big thing.

Now it hopes to make up for the latter gap by introducing a player of its own. But analysts don’t believe the Zune will hurt the iPod’s dominance. Instead, it appears it may take a bite out of Apple’s competitors.

The Zune holds 30-gigabytes of material, boasts an iPod-like click wheel and will ship in three colours – black, white and brown.

But unlike its industry counterpart, the Zune has a larger screen – 3 inches – and can do one thing the iPod can’t. It has a built-in ability to share music and photos wirelessly with other users, an advantage Microsoft hopes will be enough to make it king of the hill.

Don’t count on it, say experts. “Zune isn’t an iPod killer but it does offer some compelling features that Apple currently lacks,” explains analyst Michael Gartenberg. “It still looks like short term market share will come from other device vendors, not Apple.”

That means players currently competing for music player favour – like those made by Creative Technology or SanDisk – could see some sales loss. But most expect the already entrenched iPod to stay the course with buyers, especially now that Apple has started its own movie distribution service online.

Microsoft maintains it will spend hundreds of millions of dollars to develop its new MP3 player and is aware it likely won’t be an overnight best seller. It plans to start selling online music as well, and appears to be playing a high stakes game of follow the leader.

But Apple isn’t waiting for it to gain ground. Sources indicate the company will introduce an ‘iPhone’ next year, a device that will combine the best of cell phones with the features of an iPod.

True to form, Microsoft reveals it’s working on something similar.

But the Redmond, Washington giant is adamant its product can bear fruit in Apple’s universe.

“There are billions of people on planet earth who listen to music and (Apple’s) sold 50 million gadgets. So we’re in this early phase of digital music and portable entertainment,” warns J Allard, who’s heading up Microsoft’s Zune business.

So when can you judge for yourself? The company is expected to release the newcomer in time for the Christmas season. But just how many cash notes you’ll need to hear the musical ones is uncertain. Prices for the player haven’t been announced.