Zune 3.0: Microsoft's iPod Killer?

As much as Microsoft(MSFT Quote) would love to think it could make up ground in the portable music player market, Apple's(AAPL Quote) iPod still rules the roost -- and probably will for a long time.

But a few days ago, Microsoft released two new Zune music players as well as an upgraded version of both the player and computer software. The result is more available storage on the devices and more features for the software.

Zune vs. iPod

The flash-based Zune players now come in 16GB ($199.99) as well as 4GB ($129.99) and 8GB ($149.99) while the newest hard-drive-based Zune comes with 120GB ($249.99) of storage and complements the 80GB ($229.99) model. The two new models sport sleek black-metal back covers. ...