Microsoft has reduced the prices of the Zune HD (both versions) substantially in order to bolster its chances against the Apple iPod. After the recent price cut, the price of the the 16GB Zune HD has dropped from $220 to $190, a $30 cut. At the same time, the 32GB Platinum Zune HD will now cost $250 - down from $290.
This price cut makes the Zune HD 32 GB a very attractive proposition compared with the iPod Touch 32 GB which is dearer by almost $50! On the other end of the spectrum, the 16GB Zune is actually $10 cheaper than the 8GB iPod Touch. While the price cut has not been officially announced by Microsoft, popular retailers like Amazon and Newegg have already lowered their prices.
The question is, will these cuts cause a dent in the sales of the iPod which, in spite of having an "inferior" (on paper) spec sheet continues to sell like hot cakes. The Zune HD has a 3.3-inch OLED touchscreen display and an Nvidia Tegra system-on-a-chip. However, the UI of the iPod seems to have many takes as compared with the Zune.