Zune set for $249.99

Microsoft have set the price of the Zune to $249.99, rejecting the $99 idea mentioned previously.

And they’re even saying they don’t make money with selling the Zune, even though Apple makes a healthy profit on a compariable product.

We had to look at what was in the market and offer a competitive price,” said Scott Erickson, Microsoft’s senior director of product marketing for Zune. “We’re not going to be profitable this holiday but the Zune project is a multiyear strategy.”