Zune Pricing Similar to iPod

Reuters reports that Microsoft has announced its pricing stategy for the Zune music player (Photos) which will go on sale November 14th 2006.

Microsoft is pricing the 30GB Zune at $249.99 which is essentially the same price as the 30GB iPod. Meanwhile, songs will also be sold through the "Zune Marketplace" at $.99/song similar to the iTunes Store. Pricing the Zune at this price, however, means that Microsoft will be losing money on sales of the player at the start:

"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."


Zune has additional features over the iPod such as wireless connectivity and an FM tuner. Zune users will reportedly be able to beam songs and photos with each other. At launch, the Zune Marketplace will only sell music (no videos) but will also provide a $14.99/month unlimited subscription option as well.

The music player is reportedly only the first step in a line of portable devices, and a Zune phone is said to be in the works.
Zune, of course, provides no Mac compatibility.