Microsoft Zune to take on Apple iPod and iTunes?

Software giants Microsoft might have had another dud on their hands with the recently launched Origami project but they sure seem to be working hard on developing a challenger to the Apple iPod and iTunes products.

The company has now confirmed that they are indeed working on a new music and entertainment player and accompanying software under the “Zune” brand this year.

This would just be another attempt by another major tech giant to take on Apple’s domination in the digital music industry.

The Apple iPod range of digital music and video players already holds more than half of the digital media player market and Apple iTunes accounts for 70 percent of U.S. digital music sales.

Sources in Microsoft said that the company has got Robbie Bach, president of Microsoft’s entertainment and devices division working with J. Allard, vice president of its Xbox team on this project. Xbox has been a smashing success for the company against the market leaders Sony Playstation and the company would be hoping to create a similar successful product against Apple iPod.