Could be. I haven't seen it anywhere in stores (I live in Finland) including any webstores I know. Oh well. :/

Are the numbers from the Entertainment Division released?

It's not just the ipod's lead its the ipods innovation. In other articles on this topic they found that the ipod touch was a much bigger part of the product mix as people moved from the ipod classic/shuffle/nano to the touch.

Basically MS copied the ipod classic and instead of moving forward they seem to keep updating the 2003 version of the ipod with mild improvements. They offer a Zune pass where you can pay 15 dollars a month for music...on the ipod touch you can download Pandora, type in a song and get a custom radio station based on that song (along with 20,000 other aps of varying usefullness). The Ipod touch is heads and tails better then the ipod, and I already liked the ipod which I've had as far back as the 5GB mac only release model.

I'm sure next year there will be Zune touch if they keep at it, but by that time again Apple will have made something better and on and on it goes.

@slimebeast

yup MS have a $160 Million profit or something

 Wow, that's peanuts. It was the Holidays quarter rite?

And Squilliam was predicting the X360 division would be making $1 billion a year profit from now on...

Don't forget all Retail Office, retail operating system, and embedded os sales are included in this division.  It remains to be seen if the Xbox division generates profits.  I suspect if it was profitable as a stand alone entity, MS would not lump it in with the retail software division.

In this case MS should be able to turn a profit, on the Zune, by being the second best MP3 player on the market. 

http://en.wikipedia.org/wiki/Zune_Software#Zune_Marketplace

The choice of branding and distribution were part of the Zune as a decision of "two strategies in the market right now: cross-brand ecosystems... and singular brand ecosystems... The former is gaining in share and units sold, but the latter has enormous share and won't give that up easily."[38]

Microsoft normally follows a platform (cross-brand) strategy, as exemplified by the PlaysForSure system. However, its Xbox division has gained some experience with the vertically-integrated strategy in which it controls everything end-to-end from the hardware to the online store. With Apple dominating the audio market with its vertically-integrated iPod system, the Xbox division won permission to try the same approach, separately from PlaysForSure and PlayReady.

Microsoft also wanted to go beyond Apple’s efforts and promote the tagline "the social" and Wi-Fi (wireless sharing) as key differentiators. Chris Stephenson, leader of Zune's marketing and manager of Global Marketing for the Entertainment Business,[60] said, "we see a great opportunity to bring together technology and community to allow consumers to explore and discover music together."[38] New York Times Magazine columnist Rob Walker agrees that the Zune's "community and togetherness seem like a reasonable counterpunch to iPod's supposed attraction as an individuality enabler that allows owners to wallow in their own tasteful personal soundtracks." But he also sees the Zune as having gained appeal as an individualistic statement against the omnipresent iPod: "The most salient feature of the Zune seems to be that it's not an iPod".[61]

If I was an MS investor right now I wouldn't be too happy at how much effort they are putting into something that looks like it has no chance of success instead of calling it quits and focusing the staff/money elsewhere in the business where it can deliver a better return.

Absolute crap, it includes Windows Mobile as an OS, but that's it

From Microsoft.com

The E&D Division is composed of five main businesses: the Interactive Entertainment Business, home to the Xbox and Games for Windows gaming platforms; the Mobile Communications Business, which develops and markets Windows Mobile software, services and applications; the Music Business, developers of Zune portable entertainment devices and services; the Connected TV Business, which includes Microsoft Mediaroom and Windows Media Center; and the Specialized Devices and Applications Business, which includes the Hardware Group, Microsoft Surface, Office for Mac, Microsoft Auto and Windows Embedded software.

They're at big stores wherever I go and I looked at them online when I was shopping for a new PMP a few months ago. Still I'm not really interested in owning a Zune or an Ipod, they don't feel worth their price (though perhaps the Ipod's reliability and warranty would help justify it).

I researched and stuck with the Cowon D2 and have been pretty happy since.