Microsoft’s Zune pricing will compete with iPod

Microsoft has announced that its Zune portable media player will be sold at a price 99 cents higher than an iPod. (Why would you price something 99 cents higher than a market leader? Why not 99 cents lower?) The 30-gig Zune will retail for $249.99. Songs at Zune Marketplace, the iTunes Music Store equivalent, will match the iTMS price of 99 cents. To start, Zune Marketplace won’t be selling video.