Microsoft unveils Zune player

SEATTLE — Few have accused Microsoft of being first to the market. But plenty have learned the hard way that the company can be very good at sneaking up from behind.

That's the tack Microsoft Corp. is hoping to take with entertainment. The software maker has invested years of effort and billions of dollars in entertainment endeavors ranging from television technology to video game consoles. What's more, it has said that it's willing to spend much more money, and take much more time, to see if those investments pay off.

Its latest effort, the $249.99 Zune portable player and music service, debuts today and marks one of the most high-profile attempts to take on Apple Computer Inc.'s iPod and iTunes powerhouse.

Analysts don't expect the early effort to make a serious dent in Apple's market share.

"It's not even going to give the iPod a bad headache for the time being," said analyst Michael Gartenberg with Jupiter Research.

Still, Gartenberg says Microsoft's competitors may have reason to be wary of what the company's deep pockets and dogged persistence could accomplish in years to come.

For Redmond-based Microsoft, which rakes in billions from its highly profitable Office business software and Windows operating system franchises, it may seem strange to put so much emphasis on digital entertainment businesses, where profitability can be much trickier.

But analyst Toan Tran with Morningstar says the company could have little choice but to get into those businesses. That's because entertainment devices, which are now used for everything from storing photos to playing video games and watching movies, are increasingly encroaching into the turf Microsoft has tried to hold onto with the Windows operating system that powers most PCs today.

"Microsoft wants to get into the space because it's a very big market and the PC is not the center of the world anymore," Tran said.

Microsoft says it's grown interested in entertainment because technology now plays a bigger role in the way people do everything from watch television to listen to music. Robbie Bach, president of Microsoft's entertainment and devices division, said that's a change that plays to Microsoft's strengths.

Still, Microsoft has yet to figure out how to make a lot of money at this new game.