Ignoring the ignorant iPod, Sansa and Zen users, Zune is not going down like the titanic, as the dudes at some iPod fansites had hoped for.  Microsoft has said it expects to sell one million of its new Zune music players through the first half of 2007. That figure would pale in comparison to Apple Computer Inc.’s market-leading iPod, but Microsoft contends it would be a good start.

“We think that’s actually pretty awesome,” said Bryan Lee, vice-president for Microsoft’s entertainment group. The US$250 Zune, whose 30-gigabyte hard drive can hold 7,500 songs, debuted in mid-November to mixed reviews. One unique aspect of the Zune, its ability to let users wirelessly send songs to each other, has been panned for allowing shared music to be played only three times in three days before expiring.

Lets see, 1,000,0000 sold x $250 + 10 songs per user = $260,000,000 - thats not such a bad thing…  iPod lovers and Zune bashers, we laugh in your face.

It seems as though Microsoft released 100 strictly limited edition Pink Zunes during the US launch a couple of weeks ago, and wouldn’t you know it, like just about everything else in this online world, you can pick one up on Ebay.  Microsoft packaged the Pink Zunes inside regular boxes and marked them as white… Quite how I’d feel if I got home and opened up the box to find a glowing Pink Zune is anyone’s guess, but putting it on Ebay wouldnt be one of the things I’d do… Then again, I still have my limited edition Halo Xbox, so I keep just about everything!

Microsoft has signed an agreement with Universal that will see Microsoft contribute a portion of the sales of its Zune mobile media players to the record label. The payment is intended to compensate the label for pirated music that consumers are expected to play on the devices. “This move demonstrates there can be a win-win situation where consumers have a great experience while labels and artists are also fairly compensated,” said Universal chief executive Doug Morris.  Clearly Doug is happy we’re not all running around like Captain Jack Sparrow

Microsoft’s vice president for Entertainment and devices added that “Zune aims to be a leader in supporting artists and enabling the creative possibilities associated with connected entertainment.”

We wonder how long it’ll be until other vendors start charging a Pirate Tax… Arr Jim-lad, that’d be wrong shipmate.

Zune starts with a 30GB digital media player and adds a twist. You can wirelessly share selected full-length sample tracks, playlists, pictures or your home-grown tracks directly from Zune to Zune. You can listen to full-length songs that you receive up to three times in three days, flag the ones you like and easily buy them the next time you sync up. You can discover new music in the Zune Marketplace, and show off your favorite pictures and videos on the big, bright screen. Zune has all that and a built in FM tuner, too. Let your inner DJ run wild.

Features:

• Wireless Zune-to-Zune sharing. Zune lets you spontaneously share selected full-length sample tracks of your favorite songs, homemade recordings, playlists or pictures with friends wirelessly, device to device. You can listen to any song you receive up to three times in three days. And if you like a song you hear and want to buy it, you can flag it right on your device to easily find it later.
• Your own personalized Zune. Zune is easy to use and easy to love. You can choose one of three base colors, each combined with a distinctive double-shot finish created by the overlay of one color on another. The player also can easily be customized with your favorite pictures.
• Large color screen. Zune comes with a bright 3-inch LCD video screen that works in portrait or landscape mode. Your music, video and pictures never looked better.
• 30GB player. Zune stores up to 7,500 songs, 25,000 pictures or 100 hours of video. You can make playlists on the go and watch a slide show while you’re listening. Watching video in landscape mode gets the most out of the vivid display.
• Zune Pass. Downloads or a subscription? It’s your choice. A Zune Pass subscription gives you “all you can eat” access to discover and explore the Zune Marketplace.
• Built-in FM tuner. With the built-in FM tuner you can listen to local FM radio stations or tune in to programming while you’re at your local health club, for example. Advanced tuning capabilities allow you to see the name of the song currently playing on selected frequencies.

Accessories:

• You can choose from a full line of accessories to outfit your Zune. Three Zune Accessory Packs provide complete solutions for Zune in your car, in your home or while you travel. Individual accessories are also available.

Additional Information:

• Online music store. You can browse the huge selection of music designed to work seamlessly with your Zune in the Zune Marketplace. When you find new music that you love, it’s simple to buy it and sync it on your player. The Zune Marketplace works with the Microsoft Points program so you can purchase music online without a credit card.
• Import your music. Zune software can automatically import your existing music, pictures and videos from iTunes and Windows Media Player in a variety of formats, including your existing playlists and song ratings, as permitted by the online service from which it was purchased.
• It only gets better. As Zune evolves, your device can be easily updated. The Zune software on your PC will let you know when updates are available for download. And with built-in wireless capability in each player, the future is filled with possibilities.

Here’s a bit of an insight on what Microsoft plans to do with the Zune. On the challenge of taking on the iPod: “As we’ve gone out and talked to consumers about Zune, we’ve asked them, ‘Do you feel you have choice in the space?’ and we get a resounding, ‘Yes, we have a lot of choice — you can get a Shuffle, a Nano, a video iPod.’ … Which just amplifies the challenge that we face.”

On what Microsoft thinks it can bring to the table: “[F]or us, it’s very much about taking the world we see today, adding a software layer, creating an environment of connection, and creating a layer of intelligence that allows for much richer consumer experiences. So Zune is just another example of that.”

On the Zune’s community elements: “My experience gets better because I have one, because you have one, because Joe has one. We can learn from each other. The device can learn from me, and it can learn from each of us. When we get specific on features and things that we’re doing, you’ll see a lot of emphasis on community, on a shared type of experience.”

For the full article, click here.

The Zune digital media player will come preloaded with music videos when it is released later this year. Videos from artists including UK pop band Hot Chip will feature on the device, following a deal between the software giant and music company EMI. “Apple has been an important partner in building the digital music market but any well-funded serious entrant has got to be good news for the artists and industry,” Jeff Kempler, executive vice president of EMI unit Virgin Records America, told Reuters. The new deal between Microsoft and EMI would see music videos already loaded on to the device. EMI artists that could appear on the devices screen include alternative rockers 30 seconds to Mars. The record company said it expected its videos would be preloaded alongside offerings from other record labels. A spokesperson for EMI said that the label was still in discussions about other content deals with Microsoft.

It appears that Zune finally has a both a mommy and a daddy. BBC reports that Microsoft has announced that Toshiba will be making its Zune media player, due out later this year. Toshiba’s filing with the Federal Communications Commission showed the Zune will have a 30-gigabyte hard-disk drive and wireless connection. And that’s pretty much all they were willing to divulge. It seems that Microsoft and Toshiba are getting pretty close with one another. First the HD-DVD alliance and now this. I wonder what could be on the horizon for these two?

Microsoft are big on viral and subliminal advertising, the infamous “I Love Bees” campaign for Xbox 360 is an example of viral marketing at it’s very best. With that in mind, check out ComingZune, the site offering no help whatsoever to fans of the upcoming device!