Apple Inc.'s Ipod has been a stronghold in the MP3 player market. According to The Wall Street Journal, Zune players- which are manufactured by Microsoft- have garnered a single digit percentage of the MP3 player market share. Microsoft is seeking to increase its popularity with music-lovers by upgrading their Zune player with features that other devices don't offer.
Reportedly, the new Zune player (which is due to be released in the fall) will feature a high definition radio receiver. The "Zune HD" will also be equipped with a touch screen and a high definition video output.
While we will have to wait until fall to see how many units of the Zune HD Microsoft will move; it will be interesting to see how this announcement will affect Microsoft's stock (especially in light of their recent legal penalties.)