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Zune shelved for iPhone killer

Has Microsoft surrendered to Apple's iPod?

Don't hold your breath waiting for Microsoft's so-called iPod-killer. The Zune (available in brown!) won't be hitting Europe until 2008 at the earliest. Stop laughing, Apple… Please!

Microsoft CEO Steve Ballmer told German site 'Wirtschafts Woche' that the Zune is losing the company money, so it would be crazy to take it to new markets in its current state.

So how come we can get our hands on the Xbox 360, Steve?

Maybe Microsoft has admitted defeat in its battle against the iPod and would rather hang fire until it has caught up with Apple's iPhone. But what if Apple has announced something else by the time the Zune-o-phone is trickling onto the market?

You can't play catch-up all the time, Microsoft. As Apple CEO Steve Jobs famously told the Macintosh development crew back in the early 1980s: Real artists ship!

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