Microsoft’s Zune HD hasn’t exactly threatened Apple’s iPod touch. And, they have not had anything to compete with the 64GB iPod touch model. That is going to change on April 12 though.
More importantly, the existing 16GB and 32GB will each get a $20 price drop. The 16GB model will be $199.99 and the 32GB model will be $269.99. Amazon has been selling the 16GB model for about $168. So, we might see the Zune HD 16 at under $150 from Amazon after the price drop. Is this price drop enough to compete with the iPod touch? If price isn’t enough, Microsoft is going to start talking about the Zune HD 4.5 firmware upgrade this Friday. I hope to hear something exciting. If not, the Zune HD 16 will be drowned out from what I expect will be several weeks of iPad mania in the blogs and tech news sites.