Positive Details Emerge For Zune’s $299 Fall Debut. But Is Microsoft Further Muddying The DRM Waters?

The new Microsoft Zune portable player will be available this Fall for $299 according to reports.  The player will have a larger screen than the iPod, be WiFi capable, come in 3 colors and have a 30g hard drive.

According to TWICE, retailers briefed on the device "claimed Microsoft remained ‘fuzzy’ on the Zune’s wireless capability".  Zune "…will allow users to bookmark songs that may be shared via Wi-Fi, but that users cannot purchase songs on the go from the Microsoft Zune Web site."  PC connectivity will be required to purchase downloads.  Issues with DRM protected downloads via WiFi are consistent with problems that Sony is having with it’s own WiFi enabled devices.

"…Microsoft plans to continue to support its PlaysForSure licensees, even while it launches its own media Web site and sells its own digital media player…".   This direct competition is bad news for Yahoo! Rhapsody, Napster and other download services as well as player manufacturers who rely on Microsoft for DRM and much of their underlying technologies. 

Issues of ease of use and more importantly compatibility between devices and tracks purchased from competing services is an underlying threat to the growth of digital music. It remains to be seen if Microsoft is solving the problem or adding to this confusion with Zune.