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Microsoft Sets Zune Price
September 28, 2006 at 12:32 PM (PT)
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MICROSOFT said today (9/28) its new ZUNE music player (NET NEWS 9/14) will be sold at a price matching APPLE's iPOD and, as a result, lose money this holiday season, reports REUTERS. The 30GB ZUNE will retail for $249.99 -- 99 cents higher than the iPOD with the same amount of storage -- when it goes on sale 11/14. Songs will sell for 99 cents at the ZUNE MARKETPLACE service, which is on par with prices at the iTUNES MUSIC STORE.
"We had to look at what was in the market and offer a competitive price," said SCOTT ERICKSON, MICROSOFT's Sr. Dir./Product Marketing for ZUNE. "We're not going to be profitable this holiday but the ZUNE project is a multiyear strategy."

