Microsoft has cut the price of the Zune player by $50, dropping it to $199. Due to the newly rewamped iPod release by Apple.

Zune went on sale in November 2006 and has grabbed 9 percent to 10 percent of the U.S. market for hard-drive MP3 players.

Microsoft has shipped 1.2 million Zunes through June, exceeding a goal of 1 million shipments.

Read the official release Zune Insider

Microsoft, Microsoft, Microsoft. always competing with Macintosh
but hey it just means i can get a cheaper zune player.lol
but which it better???IPOD or ZUNE

wow i guess the zune was really a big hit much people thought that the zune would not do go against the ipod because of its size but not much buyers care about the size of the product they mostly care about the features. The feature i think that got a lot of buyers is the ability to share music but the downfall is you can only keep it for 3 days then you have to re share again to get the song again. Now the zune is cheap as a psp now.

I have a Zune. It's well worth 200 bucks (I paid 230 for mine, though - on sale at a local shop a few weeks before Microsoft announced this new price drop thing). The player has an FM tuner, 30 gigs of storage space, that sharing thing, et cetera.

Personally, though, I don't care about the fact that the Zune handles photos and videos. I like that to the extent that I can put whatever wallpaper I want on the device, but beyond that? No big deal. I bought the Zune because I really wanted to put my ENTIRE music collection on it. I drive an hour one way to school, two days a week, so it's nice to always have "fresh" tunes.

Yes, it's bigger than an iPod. But I don't mind the extra bulk because I'm less likely to forget that it's in my pocket and, you know, accidentally wash it (crazier things have happened with me and electronics).

Here is a site that has a comparison between Zune and iPod

it is quite interesting to see that both are competing with each other heads on.

http://www.zunescene.com/comparison/