Microsoft says Zune to sell for $249

I’ve refrained from commenting about Microsoft’s iPod competitor so far as it’s not much of a challenge to mock it when they decide to make one model dung-coloured.

However this article caught my eye:

AppleInsider | Microsoft says Zune to sell for $249

What the headline doesn’t tell you is that they are planning to make a loss on each unit to make that price-point, just like they do on each XBox games console. I can’t think of many other companies that would make a loss of $388 million in one quarter and consider that to be a good strategy worth replicating for another product.