Microsoft's 30GB Zune digital audio player will retail for $249.99 when it goes on sale November 14.
That's slightly more expensive than the 30GB iPod, although the difference is only 99 cents.
Consumers will be able to purchase songs at the Zune Marketplace for 99 cents. At launch Microsoft aims to have more than 2 million songs available. Additionally, it will also release a subscription model which will enable users to listen to any song on Zune Marketplace for $14.99 a month.
Analysts say Microsoft isn't getting into a pricing war, instead they focus on offering better features than the iPod.