Microsoft Zune 16

Released alongside a 120GB model in Fall 2008, the Zune 16 is a continuation of Microsoft's attempt to challenge Apple's market dominance. The third-generation model matches its direct competitor, the 16GB iPod Nano, in price point and in most features, playing videos and photos as well as music.

Its screen is slightly smaller at 1.8", but it includes an FM tuner and the ability to buy songs heard on the radio once the device syncs with a PC. Another unique feature of the Zune is its Wi-Fi capability, as it can remotely sync with a PC, and participate in wireless sharing of music with other Zunes. On the Zune Marketplace, users can buy music, as well as episodes of select TV shows, and download free podcasts, as with the iTunes Store. Although the iPod's market share may be insurmountably high, the Zune's social features and wireless capabilities give it a unique edge.