Of course, Zune is the other player made by a technology mega-company. Microsoft introduced Zune last year with enough bells and whistles to satisfy anyone’s inner geek. But it’s still an iPod world, and while Zune is more than up to the job of entertaining even the most discriminate technocrat, unit sales have yet to dent iPod’s market share.

In addition to the original 30GB model, Microsoft is giving you three new reasons to choose Zune. First up is the black 80GB model, which comes with a 3.2 inch screen and premium in-ear noise-isolating headphones and is priced at $249.99.

Those who like their players small and compact will want to check out the Zune 4GB, priced at $149.99, and the $199.99 8GB model. Both the 4GB and the 8GB will be available in pink, black and red colors.

Along with showing off its new Zune players, Microsoft also announced it has entered an exclusivity agreement with intent to acquire Musiwave SA, a unit of Openwave Systems. Paris-based Musiwave provides mobile music technology including software, marketing and content management. If the acquisition goes through, Microsoft plans on using Musiwave’s existing licensing agreements with record labels for Zune, Windows Live and MSN.

“Musiwave would bring key assets to us as we continue to bring our vision of Connected Entertainment to life,” said J Allard, Microsoft corporate VP in charge of music.

“Its software expertise and extensive relationships with operators and music companies would help us take our products and services to the next level, giving people access to whatever entertainment content they want, whenever and however they want it.”