This holiday season, Microsoft is taking aim at arch-rival Apple's iPod - and its companion iTunes software. This week, Microsoft cut the retail prices on 4GB, 8GB, and 16GB Zunes as well as on the Car Pack, Home/AV Pack, and Dock Pack. With the 8GB Zune now selling for $139 (was $149) and the 16GB model now selling for $179 (was $199), Microsoft is undercutting the price of comparable Nanos by $10 (8GB) and by $20 (16GB). The 4GB Zune anchors the lineup at $99, down $30 from its old price.
The Car Pack now sells for $69 (was $79), but the Home/AV Pack, also formerly $79, is now just $59. The Dock Pack is also cheaper at $39 (was $49).
To find out how Microsoft plans to use Zune software to drive hardware sales, join us after the jump.