Microsoft has announced their “iPod killer” Zune, (here’s a rundown at Engadget) and some first impressions. My first take is that the larger screen is quite impressive, and the WiFi has tons of potential. It looks to be the best non-iPod MP3 player I’ve seen yet. The negatives are that the storage space is smaller than an iPod, and the wireless functionality with its 1 song, 3 listens, is kind of weak. It also isn’t Mac compatible.

My ultimate dream use of WiFi on a portable player would be free network playing, meaning if someone else with a Zune was in wireless reach of your Zune and had “sharing” turned on, you could listen to any track on theirs. No copying to your Zune. The other use would be wireless syncing to the primary computer.

It seems Microsoft is going the one device, many function route, in contrast to the iPod which is divided into three lines (Shuffle, Nano, iPod), finely tuned to specific consumers’ needs. One Zune problem is that the iPod has had years of refining and redesign and only now is it possibly branching out into video, wireless, and cellphone. Microsoft seems to now have to do it all at once, including getting consumers to know that Zune = MP3 player.

I’m also wondering how locked in iPod owners are in terms of the content they’ve bought from the iTunes Music Store, that won’t be transferrable to the Zune. It’s possible there is now a base of iTunes and iPod users that would have a hard time “switching” no matter what coolness Zune offers.

Not to say Apple shouldn’t be worried; Zune is already slated for a cell phone angle. I’m already praying Apple has a widescreen wireless iPod in the works for MacWorld 2007.

Disclosure: I own a tiny amount of Apple stock.

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