Microsoft says Zune to sell for $249
Microsoft 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 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.