Well, just watched the ad. Whoopdy-freakin-doo... hey everyone, apparently the "Future of Entertainment" is a hand-held device...
Combined with iLounge's report (it's larger than the iPod and made entirely of plastic) I think I can safely say the Zune will capture some of the iPod market but I'm going to give it a "Standing Meh" as I am underwhelmed from current reports. Where's the revolution MS? Where's the innovation?
Actually, you could ask Apple the same, iPod has been out for five years and it's come down in weight and price (those two are given) and got a colour screen and the ability to show photos and video. To me, that's not a giant leap in terms of how the iPod provides us with entertainment. The nano was good, brought in a change in media and gave us truly portable music in a size that was difficult to believe but the iPod has, in my opinion, stagnated. Granting new media capabilities does not a revolution make. Granted, I live outside the US where we don't have any TV shows on iTunes so my thoughts are coming from outside Apple's home country - but guess what Apple, that's where your biggest growth is going to come from and if you don't give us something Microsoft can (they have their fingers in a lot of pots round the world) you're going to start losing business.
Both companies need to pull their collective heads out and show us the innovation.