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Reuters has reported that Microsoft’s new Zune music player will be sold at a price matching Apple’s iPod … the result … they will LOSE money!

Microsoft’s 30-gigabyte Zune will retail for $249.99 — 99 cents higher than the iPod with the same amount of storage — when it goes on sale November 14. Songs available for download at the Zune Marketplace service will cost about 99 cents a song, on par with prices at Apple’s iTunes, Microsoft said.

The world’s largest software maker faces an uphill climb in trying to topple the market-dominating iPod after conceding a five-year head start to Apple’s media player.

Microsoft said it needed to put a comparable price on Zune, even if it meant that the company will suffer a loss from the device’s sales this holiday season.

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