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Toshiba Will Make Microsoft`s Zune Media Player

According to Microsoft Corp., the well-known Japanese electronics maker Toshiba Corp. will manufacture its upcoming "Zune" portable media player, which aims to be Microsoft`s answer to Apple Computer Inc.`s market-leading iPod player. The device will include a 3-inch liquid crystal display screen, a 30-gigabyte hard disk drive, and wireless connectivity. Microsoft was not ready to disclose any more details, but said more information was coming in the "next couple of weeks."

The iPod, which Zune is about to compete with, holds more than 50% of the digital media player market, while iTunes accounts for over 70% of U.S. digital music sales. In the United States, the iPod has more than 75% of the digital music player market, according to the recent statistics.

In the user`s manual section of the filing, Toshiba refers to the device as "Pyxis" and explains how users can send and receive photos, songs and albums with nearby users with a wireless connection. The device also includes a FM radio tuner. The pricing details for the player are not available yet.The world`s largest software maker faces an uphill climb in closing the gap with Apple`s iPod media player and iTunes Music Store, the runaway leaders in their respective areas.