Microsoft introduces Zune to compete with Apple's iPod.

Byline: Jason Kolnos

Dec. 27--The iPod is so iyesterday. At least that's what the folks at Microsoft want you to believe.

In its first foray into the digital audio player market, Microsoft is hoping the Zune will provide stiff competition to Apple's ubiquitous iPod. The Zune is a 30-gigabyte audio and video player that can store up to 7,500 songs, 25,000 pictures, or 100 hours of video. The Zune, which costs around $250, also has a larger screen than any of the iPods.

In the computer world, Microsoft and Apple have warred for decades. With the introduction of the Zune, the portable-music genre is the new battleground.

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