The dominant player is the iPod. It works best with Apple's software. Unless Microsoft comes up with an ecosystem that is better than iPod-iTunes-iTunesMusicStore-Accessories, then they have little chance.

Microsoft still has to sell more Zunes than iPods to take over the music business. Zunes are not going anywhere.

Microsoft sure screwed the Plays4Sure dependent companies when it came out with the Zune.

Since well-designed software and hardware systems are NOT a Microsoft expertise or strength, coming up with something better than iTunes and the iTunes music store is going to be extremely difficult for Microsoft. They have have all that money. But if they have NO expertise in the subject, they are doomed to fail. It is so predictable.

The issue really is that all they can do at the moment is posture. Microsoft supposedly OWNED the smart mobile phone market. They've been working on it for like 10 years now and were basically shafted by Apple when the iPhone came out.

“Still, Microsoft has got a long way to go. But if they can cook up something that would put Apple’s iTunes and the iTunes Wi-Fi music store to shame, as well as everything else out there, I don’t doubt that the only way to go for them would be up.”

The problem is Microsoft have had plenty of time to do this and have failed at every attempt. Microsoft do not know what the public wants. The business side of things Microsoft ONLY survives on inertia and reliance that all those MS trained technicians will continue to suggest Microsoft because it keeps them in a job. Microsoft come up with a list of features and just keeps adding them until they have a product. Apple basically think about what someone needs to do with a product first and then designs it around what is actually needed.

Apple's iTunes store uses money to buy products. Microsoft uses Microsoft point which leads to some insane currency conversion to calculate how much you are actually spending.

Do you see the difference?

Apple make things simple. Microsoft make things hard.