Microsoft will introduce video games for its Zune music player within 18 months to match the features available on Apple’s dominant iPod.

Peter Moore, a vice president in the company’s Xbox video game business, confirmed the plan yesterday, saying the Zune’s large screen will offer a better way to play handheld games. He didn’t specify what games would be offered.

“I love the interface, I love the screen,'’ Moore said at a dinner with reporters during the Consumer Electronics Show in Las Vegas.

Zune, introduced in November, has failed to take market share from Apple’s iPod, partly because the device lacks iPod features such as games and TV programs, said Michael Gartenberg, an analyst at JupiterResearch. Exclusive Zune features, including a wireless connection to other Zune devices, don’t work very well, he said.

It’s not like the music enthusiasts have been flocking to Zune, and they need to really answer Apple in terms of feature parity,'’ said Gartenberg, who is based in New York. “But they will also have to find ways to differentiate. If all they do is hit parity with iPod, they don’t win.

Coming fall 2007, Microsoft and the car company, Ford, are teaming up to bring you a factory-installed, in-car communications and entertainment system, which will be named “Sync”.

Below is a advertisement which explains “Sync” in more detail.

Microsoft has put 100 super rare pink Zunes on the market for consumers to get their hands-on. Initially, these were only given out to the Zune team as presents, but one lucky shopper managed to buy one at Circuit City and has put it up for sale on eBay - Current Bid: $520.00 USD.

UPDATE: Sold for $761 USD

Vs. Vs.

Best Buy has reported solid Zune sales, stating they are selling the same amount of Zunes as iPods. However, Zune sales at Best Buy appear to be hurt by limited quantities.

On the Amazon Bestseller rankings for Hard Drive-based MP3 players, Zune is ranked 5th, with Creative Vision Zen 30GB Video 4th and Apple’s Video iPod holding positions #1 to #3.

And, surprisingly, they like it - giving it a solid 8/10. We say “surprisingly” because CNET is notorious for coming down rather hard on new electronics in their reviews. Below you will find the review’s summary, pointing out the good as well as the bad and making a conclusion based simply on the facts.

The good: The Microsoft Zune has very good playback performance of audio, video, and photos; intuitive and colorful interface; good FM radio with RDS; works well with Zune Marketplace software; integrated wireless allows sharing of songs (limited) and photos; many accessories available at launch.

The bad: The Microsoft Zune is not backward compatible with WMA-DRM9; weak native video support (cannot play protected content) and no video offerings from Zune Marketplace; cannot be used as a hard drive (and no UMS support); proprietary USB; cannot use Wi-Fi to sync, stream, or purchase content; minimal bundled accessories; no podcast directory; maximum capacity is 30GB.

The bottom line: The Microsoft Zune with its intuitive interface and solid playback performance will please most users. But lukewarm format support and the cool but limited Wi-Fi capability will have advanced users seeking more. The Zune is a very good start, though.

DecalGirl is now offering covers for your Zune for only $6.99. Give your Microsoft Zune a new look in seconds and protect it from abuse at the same time! Every DecalGirl skin is covered with a clear protectant layer for the ultimate in durability. The skin kit covers the front and back of the Zune for maximum protection and visual impact.

Wired has recently undergone a daring experiment on the Zune. They’ve, I jest not, dragged a key across its beautiful screen to test its scratch resistance. To most everyone’s surprise, the test proved successful and the screen came away unscathed. Anyone in the know-how recognizes the iPod’s screen is exceedingly sensitive, so this is something Microsoft should no doubt be commended on.

Gizmodo has reviewed the Acrylic Case, the Folio Kickstand Case, and the Holster Case. To check out their results visit this page.

Mike McGuire, VP of Research for mobile devices and consumer services at Gartner Inc., said he sees Microsoft’s social-networking strategy as being based on recommendations that lead to sales.

“The social nature of music as a form of currency is well established,”

“But from the larger industry perspective, where it gets interesting and powerful is when music sharing can lead to actual purchase.”

The Zune’s wireless-sharing feature is actually a temporary technical advantage–one he sees being trumped soon by phone-type devices using Open Mobile Alliance downloading, and online programs like WeedShare and PassAlong, which pay consumers in music credits the more their recommendations are purchased. This capability, he added, is:

“remaking the way music is promoted and marketed. And it’s all based on the same value: How do you turn consumers who like and buy your music into your best salespeople?”

Read more from YahooNews

A video discussing the Microsoft Zune launch: can it take a bite out of iPod sales?