Microsoft this week introduced three new models of its Zune digital media player that wirelessly and automatically update their music, photos and videos when placed near a user's computer.
They mark the second generation of Microsoft's answer to Apple's iPod, which has sold more than 100 million units in various shapes and sizes since its 2001 launch.
By comparison, Microsoft joined the fray last year with a single 30-gigabyte Zune model and has sold 1.2 million units.
The new Zunes will come in four-gigabyte, eight-gigabyte and 80-gigabyte models. All will allow a user to automatically sync media via a wi-fi network from a PC to the Zune when its battery is charging.
Microsoft also aims to tap the social-networking phenomenon with Zune Social, a website for users to display music they like, share playlists and find friends with similar tastes.
The new devices, set to go on sale in the US in mid-November, are equipped with a circular navigational pad that allows a user to both "flick" through options as on a touch screen or "click" through choices.
The four-GB model will go on sale at $149 (€105.52), the eight-GB Zune will cost $199 and the 80-GB model will sell for $249. Those prices are the same as similar-sized iPods.
Analysts said the next-generation Zunes are necessary to keep existing users happy, though the new devices are not enough to close the gap on Apple.
"I don't see Microsoft gaining market share on Apple, but it may gain share against the other also-rans," said Van Baker, analyst at research firm Gartner, noting SanDisk and Creative may be vulnerable.
In the second quarter, Apple had 81.3 per cent of the digital media player market, according to NPD Group. SanDisk was second at 5.8 per cent while Microsoft had 4.4 per cent.
New Zunes will automatically import TV shows recorded to Microsoft's Windows media centre, built into most new Windows Vista operating systems. Zune Marketplace, a digital music store, only sells music videos and offers video podcasts free.
Microsoft said it would add more than one million MP3 songs free of digital rights management on to Marketplace, declining to identify music labels it planned to work with on that.
The company completely redesigned software that runs on the Zune and links it to PCs to make it easier to navigate and search for new music.