SEATTLE — Microsoft Corp. slashed $50 from the price of its Zune digital media player Wednesday, just before Apple Inc. announced an iPhone price cut and additions to its market-leading iPod line.
The 30-gigabyte Zune now costs $199, Microsoft said in its Zune insider blog.
“It’s part of the normal product life cycle, something we’ve had on the books for months,” wrote Cesar Menendez, a Microsoft employee and blogger.
Matt Rosoff, an analyst at the independent research group Directions on Microsoft, noted that Microsoft is expected to announce new Zune models and features for this holiday season. Until then, it’s not necessarily fair to compare the Zune with the iPod.
“I think they’re doing OK considering that they are only competing against one iPod,” Rosoff said.
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