Much attention has been put on the anticipated launch of the Microsoft (News - Alert) Zune. And, while many have viewed Microsoft’s answer to the iPod as a weak start to dethrone the MP3 King, Microsoft doesn’t actually expect its first attempt to come close to iPod’s dominance. The software giant is, however, hoping that the Zune will make a strong opening statement.

The $250 Microsoft player, expected to go on sale Tuesday, is the first of its kind from Microsoft. The company is attempting to build a foundation on which to base a larger product line roll out in the future. Microsoft isn’t forthcoming regarding how many devices they expect to sell over the holidays, although production is planned for enough models so that those who want a Zune should be able to get one.

Microsoft is positioning Zune as an appealing offer in that its casing is attractive and it comes equipped with a large color screen. The features of the device, however, do not fully leverage either of these attributes. The player lacks the ability to purchase songs on the go and users cannot download videos at all, something that could continue to make iPod the MP3 of choice.

Microsoft has been adamant in its “keep it simple” focus. This single device will sell only in the US and won’t compete on the same level as some players that will offer features such as audio recording, games, digital recording or even a hard drive.

This simplicity is positioned as a marketing benefit for Microsoft. The company highlighted that confusion can arise when users try to differentiate the songs that can be played versus those that are only transferred to a player as a disk mode file. As the Zune software is the only method of moving items into the Zune, Microsoft hopes to eliminate any confusion while also capitalizing on the benefit of doing so.

The idea of keeping its initial launch into the MP3 world simple could prove to be strategic genius as the company has the ability to quickly make additions through simple software updates. In fact, the Windows Vista is expected to be the first update available.

Most of us watching are expecting that Zune is not going to pose a large enough threat to iPod initially to cause much of a dent in Apple’s share of the MP3 market. However, one element of Apple’s success that has not transferred over onto the iPod is the fierce loyalty of the Apple user. Sure, iPod owners love their device, but a recent study from ABI Research (News - Alert) shows that 58 percent of iPod owners would consider purchasing a Microsoft Zune.

Whether or not Microsoft can create loyalty with the Zune remains to be seen, but the competitive dance between the two will be fascinating to watch as it is expected to be quite a show.

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Susan J. Campbell is a contributing editor for TMC and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.