Microsoft Slashes Zune Prices

Microsoft announced today price cuts for its struggling Zune MP3 payer. The Redmond-based company cut the price of its 4GB model from $129 to $99. Meanwhile, the 8GB model has fallen $10 to $139, and the 16GB model now costs $179, which is down from $199, according to Silicon Alley Insider.

Microsoft is also cutting prices on some Zune-related accessories, including the Car Pack/Dock Pack and the Home AV Pack. The Zune has struggled to gain traction against the Apple iPod juggernaut, despite the fact that it’s actually a decent player; I reviewed Zune Marketplace for PC Magazine last month and found it to be a limited but pretty polished online service overall.