Aparently Zune didn't fare so well against the iPod and other AAPL products in 2006! Microsoft's VP, J Allard's challenge from Bill Gates of "beat Apple" seems to be a little on the loosing end even if Microsoft wants to be "king of all media."
http://bits.blogs.nytimes.com/2007/11/16/j-allard-microsofts-plan-to-be-king-of-all-media/
http://www.wii60.com/forum/showthread.php?t=2063