News 

Jason Reindorp told Reuters that Microsoft was realistic about the challenge it faced in trying to crack into the digital music player market, which is dominated by Apple's iPod.

'You couldn't get a more entrenched competitor,' he said at the annual music industry Midem Net conference in Cannes. 'But we feel really good about the first steps that we've taken.'

Reindorp

'The industry moves in this sort of Christmas to Christmas cycle. So you can expect that there will be more devices, more features in the market at that point,' he said.

'Our next round of introductions will probably be in time for the holiday of this year.'

He said Microsoft planned extensive research with focus groups in Europe to see how it could be modified for a European consumer.

He said the Zune had a 10.2 percent market share in the US in the 30GB category, according to the latest data, and that it was still in line to sell over a million units by June 30, the end of its current fiscal year.

'We're not simply trying to play catch up with Apple,' he said. 'We are very realistic, we have what is essentially a three-year plan to firmly and solidly get on the radar.'