Microsoft today announced Zune updates, timed to upstage iPod/iTunes announcements anticipated from Apple on Tuesday. 

Unfortunately for everybody who owns a portable media player, Microsoft’s announcements are woefully misguided and mistimed. 

You have to give Microsoft credit for releasing another Zune update that brings new features to their existing players. Apple typically saves significant new features for the current line of iPods to give people incentive to upgrade. 

However, Microsoft’s previous Zune’s updates have not offered enough value to attract many buyers away from the iPod/iTunes ecosystem, and this update doesn’t look like it will either. Microsoft continues to focus on features, like FM tuning, that haven’t proven to be big with buyers.

Microsoft Zune: Now WIth More Clear Channel Than Ever!

Even more bizarre, Microsoft cites Clear Channel’s CEO in their announcement for the Zune update: 

“Microsoft’s decision to integrate an FM tuner into the Zune was revolutionary and they continue their extraordinary leadership with Buy from FM,” said John Hogan, president and CEO of Clear Channel Radio. “We’ve always known that radio is the primary source for discovering new music, and Microsoft’s decision to marry music discovery and delivery does two things: enables consumers to instantly satisfy their passion and enables FM song tagging to be enjoyed by all radio listeners, everywhere.”

What is Microsoft thinking?

The biggest value of a portable media portable media player is the fact that it frees you from being chained to Clear Channel and mainstream radio!

Seeing Clear Channel featured in Microsoft’s Zune press release suggests that there may be a fundamental gap in Microsoft’s understanding of what motivates people to get and use a portable media player.

If people want to listen to radio, people have them at home, in their car and at work. Putting a radio tuner into a portable media player is a feature that, to most users, is little more than a complication. 

This sort of thing is a disappointment; there are a ton of talented people working on the Zune, and having the device marketed as a sort of Clear Channel radio accessory is a real mistake. 

Microsoft has demonstrated that it has the might to compete with Apple in the world of portable media players, but not the vision. This is a loss for Zune owners, iPod owners and the entire portable media player market.

Zune Updates

Here’s a quick rundown of the Zune changes:

• Users can now access the Zune Marketplace music store directly from their device when they are in a recognized Wi-Fi hot spot, or through a home wireless network. 
• Zune customers now have a choice in how they acquire music: They can pay per track or choose a Zune Pass subscription. Zune Pass subscribers can download or stream music to the device or their computer interchangeably, all for a flat rate of $14.99 per month. 
• The new Zune software update introduces “expert sources”, recommendations from the Zune service and online music community, and the user’s own play data to create a dynamic, digital music experience where discovering music is easy and seamless.
• Zune pass subscribers can get channels of music preprogrammed or create their own custom channels. 
• Now the Zune software learns what kind of music users like and makes personal recommendations. 
• The improved Now Playing view is more interactive and cinematic. Users can sit back and enjoy the combination of artist imagery, colorful effects, bio information and data from the Zune online music community, all combined in a full-screen view. 
• A new firmware update will bring new features customers have been asking for:

Games on the go. 

Audiobooks. All Zune devices will feature support for audiobooks this fall from industry leaders in the digital distribution of audiobook content.

Audible. Customers can visit audible.com to download and sync favorite books from the 50,000 titles available from over 600 publishers and content providers.

OverDrive. They can download content from sites powered by overdrive.com, including 7,500 libraries’ Web sites worldwide. (http://search.overdrive.com)

Microsoft also announced new pricing, effective Sept. 16

• 120 GB: $249.99
• 80 GB: $229.99 
• 16 GB: $199.00
• 8 GB: $149.99
• 4 GB: $129.99