I look at this in a similar view to the Xbox v Playstation 2 introduction. MS knew in the first round they would'nt really compete with the PS2, and this is what happened. However now looking at Xbox 360 vs PS 3, I'm not sure if Sony's position is as strong as it once was.
I presume MS are taking the same long term view with the Zune, and would expect to be starting to compete with Apple for serious market share in 2-3 years, having lost a fortune in the early days on the current Zune.
I presume MS are taking the same long term view with the Zune, and would expect to be starting to compete with Apple for serious market share in 2-3 years, having lost a fortune in the early days on the current Zune.