Zune tunes to cost 99 cents each

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. µ