CES Update: Microsoft, the world’s largest software maker, plans to bring video games to its Zune music player within 18 months. Apple introduced iPod video games in September of 2006.

Peter Moore, a vice president in the company’s Xbox video- game business, confirmed the plan yesterday, saying the Zune’s large screen will offer a better way to play handheld games. He didn’t specify what games would be offered.

“I love the interface, I love the screen,” Moore said at a dinner with reporters during the Consumer Electronics Show in Las Vegas.

The Zune, introduced in November, has failed to steal market share from Apple’s iPod and is seen by many to be a failure. The Zune lacks iPod features like podcast support, games and TV programs. Features unique to the Zune, such as its wireless capabilities, haven’t been implemented in a useful way.

“It’s not like the music enthusiasts have been flocking to Zune,” said Michael Gartenberg, an analyst at JupiterResearch. “They need to really answer Apple in terms of feature parity. But they will also have to find ways to differentiate. If all they do is hit parity with iPod, they don’t win.”

via Bloomberg