Microsoft has finally unveiled its Zune media player, with which it hopes to challenge the hegemony of Apple's iPod.

Zune, which will be available this fall, in time for the Christmas shopping season, features a 30GB hard drive and a 3-inch screen, CNET reports. Microsoft's announcement comes after Apple's debut earlier this week of its fifth-generation iPod, which will provide longer battery life and a lower, $249 price tag - undercutting Zune's anticipated $299 price.

But one interesting feature that the Zune will have that the iPod can't match is the ability to transfer files with other Zune users via built-in Wi-Fi. However, swapped songs can be played only three times over a three-day period, and Microsoft will allow artists to opt out of this feature if they choose.

Still, the media player won't allow movie playback in time for its Holiday release, and that could be a deal-breaker for many buyers. Microsoft has stated that it wanted to focus first on offering music, Wi-Fi and a subscription-based download service, and later move into film playback.