Microsoft's Zune to rival Apple's iPod

What's new:
Microsoft has confirmed that it plans to launch music software and players, under a brand called Zune.

Confirming weeks of rumors, Microsoft said it will launch music software and players under the Zune brand, though the software maker left plenty unsaid in its confirmation.

So what's Zune:
Zune is the name of the project, the brand, and the device.The first Zune device will be launched this year, with more devices to come in 2007.
The Zune brand encompasses not only the device, but the software that will drive it, as well as a music, movie, and media service the Zune device family will use for acquiring, sharing, and discovery of said media. Music will be the first angle of service that is launched, "connected entertainment" being the ultimate goal.

The Zune media device will be drive-based, and have WiFi.The Zune brand is intended to be an entirely vertically integrated end-to-end solution, not unlike the iPod / iTunes / iTunes Music Store triumvirate. Ofcourse you will not be able to use your Zune player with Napster or Vongo.This will be an entirely new system. Microsoft will continue to support and develop for their PlaysForSure initiative.Zune is under Microsoft's new Entertainment & Devices Division.

Bottom line:
The software giant's new stab at the digital music market is just the latest in a long line of efforts by a range of companies to challenge Apple's dominance with the iPod and iTunes. With products not due till later this year, this challenge remains a largely hypothetical one.