Just caught a piece on C|Net (Link) about Microsoft’s new Zune device. I’ve not paid much attention to this thing, so I don’t know if this is something that was previously released, but I found the whole point system interesting. What a great way to mask the cost of a piece of media. Everytime the newsmedia reports on the cost, what are they going to do – provide a monetary conversion? It’s easy to report the cost of media on iTunes or Google Video, but MS is effectively creating its own currency. Even more interesting is how it’ll dovetail with XBox Live Marketplace which already uses points.

There will also be the option of purchasing individual songs through a system called Microsoft Points. The new Microsoft cash system will work by adding money to an account, as with a prepaid phone card. Points will then be deducted from the account with each purchase. A single song will cost 79 points, “the equivalent of 99 cents,” according to a spokesman for Microsoft. The point system will also work in the Xbox Live Marketplace, and people will be able to buy points in the denominations of $5 for 400 points, $15 for 1,200, $25 for 2,000, and $50 for 4,000. That makes $1 worth about 80 points.

Guess I should add this to my list of why I think MS has been chasing a virtual world (reLink). Now if they could just generate some buzz around their Virtual Earth service.

{Update: Good opinion piece discussing Zune – Link – in the context of MS versus Apple.}

{Image source: C|Net}