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Report: Zune to cost $299, come in three colors

Microsoft's first Zune device will sport a 30GB hard drive and sell for $299, according to a report in This Week In Consumer Electronics. The trade publication said that the initial Zune would be a single model, available in three colors.

A Microsoft representative declined to comment on the article, which cited reports from retailers that had been briefed by the software maker. Microsoft confirmed last month that it planned to offer its own Zune-branded line of devices, beginning with a single product this year. It said the device would be hard-drive based and have a Wi-Fi connection, but offered few other details.

Robbie Bach, who heads Microsoft's entertainment and devices unit, told financial analysts that the Zune effort is likely to take time to catch on and cost the Redmond-based company hundreds of millions of dollars to market.