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A Zune Pass subscription gives consumers access to millions of songs for $14.99 per month

The Zune device will retail for $249.99 U.S.

Microsoft's Zune will not play protected Windows Media Audio and Video purchased or "rented" from Napster 2.0, Rhapsody, Yahoo! Unlimited, Movielink, Cinemanow, or any other online media service. That's right -- the media that Microsoft promised would Play For Sure doesn't even play on Microsoft's own device. Buried in footnote 4 of its press release, Microsoft clearly states that "Zune software can import audio files in unprotected WMA, MP3, AAC; photos in JPEG; and videos in WMV, MPEG-4, H.264" -- protected WMA and WMV (not to mention iTunes DRMed AAC) are conspicuously absent.

You know, iTunes by default rips in AAC, there's a lot of AAC content out there, so we'll play AAC natively. MP3s, obviously. Windows Media files, obviously. The video resolution is 320 x 240, QVGA resolution. And so we'll do H.264 playback as well, because there's a lot of content out on the web for video iPods. Lots of DVD ripping software out there that encodes to those formats, so the most popular formats out there, whether it's MPEG-4 or H.264, we'll support those. So, we really are taking a relatively agnostic approach to different formats.

For us this is not a format play, we're not trying to tell consumers what format they have to keep their media in. We're trying to embrace the most popular formats out there. We won't have every codec, we won't have an extensible codec architecture, instead we want to make it really, really simple, and we're prioritizing the media that's out there and the media our consumers have.

We know that people are going to be watching TV and want to have some kind of experience with their Zune and their music and the social community they've developed there and the types of video programming that they're interested in. I think there's a lot of opportunities for cross-pollinated experiences and we're building the technological foundation to do it. But right now, we're just starting with a real focus on music, and over time we'll light up more and more of those capabilities and ideas as the consumer gets a little bit more conditioned.

f I'm in an internet cafe with my laptop on WiFi and I don't have my Zune with me but I have my Zune software client running on my PC, can I interact with Zune players?

That's a direction that we think we'll likely go down. We're not starting there however, we're trying to keep the messaging and the experience simple. You and I are in the same room and I say, "Here's the soundtrack you love, check it out" and I push the send button and it gets to your device. Next year we can start going through some of the things that you hinted at that are very much what our customers are going to want.

You guys know all too well 802.11 devices there are out there. Think about what else we can connect to. Think about all the other scenarios we could do, whether location-based, etc. The device itself is intended to be a future-proof platform that's part of this connected entertainment world where entertainment will become more personal, more interactive, and more engaged with community.

Even that built-in wireless feature appears to be crippled at the outset: If you could sync your player with your library of tracks on your PC, or buy songs wirelessly, then Microsoft would at least have a key differentiator from Apple.

In a slight nod to Apple's dominance in digital audio, the Zune PC software will allow you to import files from iTunes as well as Microsoft's own Windows Media Player.

You can also share playlists and pictures with your buddies, along with what we suppose are "unprotected" homemade recordings.

on the codec front: the Zune supports h.264, MP3, AAC and WMA.

They also finally let slip the screen res -- an unsurprising QVGA

As Zune evolves, the device can be easily updated. The Zune software on your PC will let you know when these updates are available for download.

To get started with great music and videos out of the box, every Zune device is preloaded with content from record labels such as DTS, EMI Music’s Astralwerks Records and Virgin Records, Ninja Tune, Playlouderecordings, Quango Music Group, Sub Pop Records, and V2/Artemis Records.

Easily import your existing music, pictures and videos in many popular formats and browse millions of songs on Zune Marketplace, where you can choose to purchase tracks individually or to buy a Zune Pass subscription to download as many songs as you want for a flat fee.

Every Zune device creates an opportunity for connection. Wireless Zune-to-Zune sharing lets consumers spontaneously share full-length sample tracks of select songs, homemade recordings, playlists or pictures with friends between Zune devices. Listen to the full track of any song you receive up to three times over three days. If you like a song you hear and want to buy it, you can flag it right on your device and easily purchase it from the Zune Marketplace.

Zune comes in three colors: black, brown and white.

The Zune device features wireless technology, a built-in FM tuner and a bright, 3-inch screen that allows users to not only show off music, pictures and video, but also to customize the experience with personal pictures or themes to truly make the device their own.

Zune includes a 30GB digital media player, the Zune Marketplace music service and a foundation for an online community that will enable music fans to discover new music.

Available this holiday season in the United States

“With Zune, we are not simply delivering a portable device, we are introducing a new platform that helps bring artists closer to their audiences and helps people find new music and develop new social connections.”

Designed around the principles of sharing, discovery and community, Zune will create new ways for consumers to connect and share entertainment experiences. The Zune experience centers around connection — connection to your library, connection to friends, connection to community and connection to other devices.