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And the latest tunes will will cost about 99 cents in the Zune Marketplace, Microsoft said.
The firm admitted it was prepared to take a loss on its music-playing hardware if necessary, as it has been doing with its Xbox. It is a software maker, after all.
"We're not going to be profitable this holiday but the Zune project is a multiyear strategy," said Scott Erickson, Microsoft's senior Zuner.
Microsoft said it will offer more than two million songs at launch. Music fans will be able to buy a subscription pass for $14.99 a month after which time your songs will shrivel up and die.
So you'll have to pay up each month to keep listening.
SpokesVoles confirmed a Zune phone is a distinct possibility, according to Reuters. ยต