Microsoft's new Zune brand will deliver a family of hardware and software products to consumers.
The player will have Wi-Fi capabilities and use a hard drive to store music and may use wireless connectivity to share music with other Zune devices.
Until now Microsoft has largely relied on partners to make the players and software that use its Windows Media digital rights technology and tie into the Windows Media Player software built into its Windows operating system.
Apple has maintained a dominant share of both the music player and downloadable music businesses, selling more than 58 million iPods and more than a billion songs.
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