It would be cool if Microsoft could roll out the Zune-devices in Europe. :)

I agree with Doogald that at this point, there are no conversions to be had on MP3 player front. People who use iPods will continue to buy each new generation due to brand loyalty, lifestyle/culture identification, product satisfaction and the fact that it is simple to use their existing libraries.

The segment of the market remaining are those who opt not to buy an iPod for whatever reason, and is split between Zune, Sansa, iRiver and Cowon. I disagree that Zune is competing on the low end of the market. Rather they are competing in the "Not an iPod" segment. This is still a selling point for many.

For people to change segments at this stage (iPod or Not an iPod) will require a tech/Gui advance I don't see anyone making in the foreseeable future.

The iPod Touch *is* an iPod. Even the iPhone *is* an iPod. It has all of the music playing functions of any other iPod, and then some. My guess is that it sells more than a classic does these days. If Microsoft chooses not to play in that market, that's their loss. Or their mistake, whichever.

My guess is that Microsoft entered the MP3 player market way, way too late. By the time they entered the market was saturated - everybody who wanted one had one, and anybody who did not have one is probably happy enough with an iPod of whichever sort that they'll consider nothing else. And the Zune, even if it is better in some ways, is not better enough to make a difference. Pricing it down shows that Microsoft knows this; they are not the premium MP3 player in this market and need to compete on the low end, not the high end. The Zune is not dead, but unless they do something drastic with it - if they only do incremental software updates in its current form factor - it's got a ceiling not much higher than where it sits now. Fan boys and accidental purchases by people buying gifts, thinking that they are buying an iPod. That's my guess.

I just bought myself a new Nano on Friday. First, it runs on my desktop OS, second, it has Nike+ functionality. Third, as far as the quality of music that goes out through its headphones, it is as good as it gets. And of course I have to do absolutely nothing with the thousands of songs I already have in AAC format, and all of my podcasts. I'l just plug it in and I am good to go.

Chris...fair enough. A more proper comparison by device, for stability and what not, would be Zune vs iPod Classic.

However, iTunes is iTunes, and I prefer the Zune desktop for syncing and playing music.

The iPhone and Touch are not "the iPod" though. Comparing apples and apples, not apples and oranges. :)

Wireless shopping: the Touch and iPhone have that, do they not?

And, for his number 11, I already can do that with my EyeTV software on my Mac Mini. Record a show, it automatically converts to iPod format and populates iTunes.

@ Zealot:

Wow, never saw anyone saying something as Zune > iPod Touch. Awesome, considering you give some strong points. I might just buy a Zune...

I have been using both my Zune 2 80G and iPod Touch side by side for a couple months now, and while I love the Touch for books and games, the Zune is by far the better music player for me.

The Zune OS is far superior in my opinion, both on the desktop and the device. More usable and efficient for playing music. It is also much more stable as a device then the iPod.

Things like the radio and wireless sync are just gravy for me.

Your reason #1 (The Zune is not made by Apple) is my one and only reason ... yeah, I guess I'm a died in the wool fanboy as well!