The IPOD has given the Zune the business. Literally.
Gamestop will no longer sell Microsoft’s Zune. Go Figure. I don’t know anyone that owns a Zune. I usually see Zunes in the store like puppies in animal shelters looking to be freed. The Zune has cool features. It’s just no match for Mac attack.
Apple has the MP3 market in a strangle hold. It doesn’t help that MS has a bad reputation. It doesn’t matter how much money Bill donates. People are still leery of MS’s business ethics.