Zune Date, Price Revealed

The first Zune portable media player will go on sale on Nov. 14, 2006, in the United States only, and will cost US$249.99, which is ninety-nine cents more than a similarly equipped (30GB) iPod from Apple. The relatively late launch and lack of discount compared with the iPod mean that Zune will pose little threat to Apple this holiday season, but planned expansions to the Zune product line, such as a flash-based player, might eventually make a dent.

The associated Zune Marketplace will launch at the same time as the device and will offer single song downloads for 79 Microsoft Points, or approximately US$0.99, the same as Apple’s iTunes and most other services. However, unlike other online stores, where users can spend as little as US$0.99, Microsoft Points must be purchased in advance in packages from 400 (US$5) to 4,000 (US$50); they can also be used to buy content, such as game levels and video trailers, from the Xbox Live Marketplace for use on Xbox 360. Microsoft will also offer a Zune Pass subscription, which offers access to all the songs in the Marketplace, for US$14.99 per month.