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This week, Microsoft took the wraps off their new Zune platform of connected media devices.  They announced their headline Zune player as well as plans for integration with the Zune Marketplace, both which are similar to the offerings of Apple.  Earlier in the week, Apple’s Steve Jobs announced at one of his famous special events entitled “It’s Showtime” that Apple is cutting the price of its 30GB iPod from $299 to $249.  This quick and drastic price change likely caught Microsoft off-guard, analysts are saying.

“Microsoft formally announced its Zune portable media player, with specs in-line with Toshiba FCC filings,” American Technology Research analyst Shaw Wu told clients on Friday. “However, pricing and timing were not revealed likely because our sources indicate that Apple’s aggressive pricing at $249 for its new 30 GB video iPod took Microsoft by surprise.”

It looks like Apple made Microsoft’s pricing strategy obselete before it was event announced.  If this is any indicator for the future, get ready for a market share battle during the next couple of years.

During the holiday season this year, we’ll have our first opportunity to see the Zune up against the iPod.  After all of the positive press coverage of the Zune lately, I think Apple’s going to have a run for their money.

Read [AppleInsider]

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