Zune is expected to be on store shelves in time for Christmas as previously expected, Reuters reports. Microsoft will also "try to replicate Apple's simple approach to providing an integrated, seamless ecosystem for digital media," according to the Reuters article.

"Under the Zune brand, we will deliver a family of hardware and software products, the first of which will be available this year," said Chris Stephenson, general manager of marketing for Microsoft, in a prepared statement, according to PCMag.com. "We see a great opportunity to bring together technology and community to allow consumers to explore and discover music together."

Microsoft's challenge, according to Mary Jo Foley at Microsoft Watch, is to "make sure the Zune reality measures up to the hype, so the company doesn't repeat its overpromising/underdelivering strategy, as it did with the "Origami" ultra-mobile PCs."

About Zoom

While there is still no definitive word on what processor or operating system Zoom might use, the device reportedly will have WiFi, a key feature missing in the iPod, according to a Bloomberg.com news item published earlier this month. WiFi access allows users the convenience of downloading music without being tied to a computer. Microsoft is also reportedly promising a "better quality picture."

Bloomberg said that Microsoft has hired music industry veteran Chris Stephenson, who, along with other company execs, has been involved in discussions with a number of content providers about licensing content for a music and video store to compete with Apple's iTunes. Music and video providers are reportedly interested in working with Microsoft as a way to counter Apple's overwhelming dominance of the market. According to market research firm NPD Group, 72 percent of music downloads come through iTunes.

"This is a radical departure for Microsoft," said Michael Gartenberg, vice president and research director for JupiterResearch, as quoted by PCMag.com. "It's a change in their business model and for the first time will put them in direct competition with partners that license technology from them."

Additional information is available from this article at our sister site, PCMag.com:

Microsoft Announces Its Own iPod Competitor

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