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Although Microsoft's answer to the iPod has 30GB of internal memory, a built-in WiFi chipset for Zune-to-Zune file sharing, and superior audio capabilities, it has been met with lukewarm market acceptance to date.
Why is this? Users say that its proprietary USB interface is difficult to use, it is not backwards compatible with WMA-DRM9 formatting, you can't use the WiFi interface to synch, stream, or purchase content and it cannot play protected video content. The most known issue is that Zune sharing is limited to three plays of a song within three days - something most users didn't think was worth the effort.
Other than these issues, it does have a nicely designed package, its own music store and intuitive and easy-to-use GUI, and a rugged case.