The Microsoft product that competed with the iPod was Zune. Microsoft launched Zune in November 2006 as a combined hardware, software, and digital-media brand aimed at challenging Apple's dominant iPod ecosystem.
The first Zune player was developed in cooperation with Toshiba and included a 30 GB hard drive, an FM radio, and a 3-inch screen. Later models included smaller flash-based players and the Zune HD, which added a touchscreen and HD radio. Microsoft also created Zune Marketplace and Zune Pass, a subscription service that let users stream and download music.
Zune introduced distinctive features, including wireless song sharing between nearby players, although licensing restrictions limited what recipients could do with shared tracks. The brand developed a loyal following, but it never approached the iPod's market share. Microsoft discontinued Zune hardware in 2011 and ended the remaining service in 2012, shifting music and video products toward Xbox branding.