Microsoft's New Zune Says 'We're No iPod'

SAN FRANCISCO -- Microsoft(MSFT Quote) amped up its Zune line Monday, fighting its status as an also-ran against the iPod.

The new models were rolled out a day before Apple(AAPL Quote) is expected to launch its new iPod models in time for holiday sales.

Microsoft had sold 2 million Zunes as of July since the player's launch in 2006, compared to 100 million iPods sold since its first release in 2001. Apple sold 10.6 million iPods in the first quarter of 2008.

But the key to Microsoft's announcement focuses less on new models and more on the Zune's social-networking software, with features that allow users to see what music is hot with friends and people with have similar tastes. Apple does not have a social site comparable to Microsoft's social.zune.net. ...