Microsoft developing rival to the iPod

Microsoft has confirmed working on a new line of portable music and entertainment products as also software, under the brand name "Zune".
According to industry sources, Zune is being seen as a competitor to Apple's wildly popular iPod. Apple commands a market share of nearly $4 billion, in terms of portable entertainment devices.

Reportedly, the first device to be released this year will be a music player along the lines of Apple's iPod. It will be launched along with a compatible music store, a la iTunes, and will include a hard drive and a Wi-Fi connection for wireless Internet access.
Although the Zune product line has not been finalized as yet, the products might include a portable video player and a portable game device as well.

Chris Stephenson, general manager - marketing, MSN Entertainment Business, Microsoft, said that Zune users will be able to view each other's play lists, recommend music, and sample tracks. He said this would extend to the Xbox 360, Windows Media Center, and the Windows Mobile operating system.
Recently, Microsoft partnered with MTV to launch a music download service in addition to its own service, MSN Music that was launched nearly two years ago.