Microsoft says Zune to sell for $249Microsoft Corp said Thursday its Zune digital media player will be sold at relatively the same price as Apple Computer's new 30GB video-enabled iPod and admitted that it will lose money on each sale as a result.
The Zune, which also comes with 30GB of storage, will retail for $249.99 (about 99 cents more than the iPod) when it goes on sale Nov. 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 told Reuters.
The Redmond, Wash.-based software maker also told the media outlet that it needed to put a comparable price on Zune, even if it meant suffering 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."
Microsoft has said it plans to spend hundreds of millions of dollars over the course of the next several years in a bid to catch Apple's iPod.
The Zune player is the first step in creating a new brand of portable devices, the company has said, adding that a Zune phone is also in the works.
On Topic: General
- This week on AI: 'Apple Car' delayed, new iOS 10 & macOS betas, 'iPhone 7' leaks & more
- Hacker who targeted celebrity Apple and Google accounts sentenced six months in prison
- US appeals court vacates Apple win in Unwired Planet patent suit
- Apple retakes top spot in FutureBrand 'perception strength' rankings
- Why Alphabet's Nest doesn't (and probably won't ever) support Apple's HomeKit