Microsoft To Charge $249.99 For Zune

Microsoft Corp.'s Zune music player looks a lot like an iPod, acts a lot like an iPod and will cost about the same as an iPod. The software giant said Thursday that it will charge $249.99 for the device, signaling that it isn't planning to spark a major price war to gain market share.

"It's not going to be price that really drives people to Zune," said Michael Gartenberg, an analyst with Jupiter Research.

Instead, the company is hoping to gain an edge by touting two features Apple Computer Inc. doesn't offer on its iPod: a subscription music service, and the ability to share music with other Zune users through a wireless connection.

Microsoft plans to debut t...