Zune, The iPod Killer?

The "Zune" (shitty name) is Microsoft's upcoming digital audio player, but is it an iPod killer? To eat into Apple's market share this device needs to 1) have an associated music store that has all the current releases, 2) it needs to read the AAC format so people don't have to forfeit music they've already bought, and 3) it needs to cost less than a similarly configured iPod.

The screen looks nice, I'll give them that.