According to a Bloomberg.com report, Microsoft plans to "eventually" add video-sharing to the Zune and may add a Zunephone model to the line. "The race is on," CEO Steve Ballmer reportedly said. "I'm confident we can keep up. They have brand and image going for them, and we have some innovative ideas."
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When Balmer buys his kids an iPod, then I will buy a Zune.
It is easy to keep up when it does not matter how much you lose. If there is a race on, it is a race to get Microsoft to do what it has to do, says it will do. It does not care about the "if else" as it demonstrates so well in how it plays brinkmanship with the EU and the potential fines.
One thing potential ZUNE users have to appreciate is that all the innovation will move them by. This first version does not have all the things that were expected. In this it is not dissimilar to what Vista was to have and is going to have.
Thanks,
GerardM