Microsoft's "iPOD Killer" ?

After Apple's success in launching their MP3/video player -
iPod; now comes Microsoft. It was announced last June that they are doing this project they called, codename: Zune or Argos or Pyxis which will be launched on the 4th Quarter of this year. It's believed to be an iPod-like device that would include wireless connectivity in a design very reminiscent of the Apple iPod. There are reports that "it also comes with audio and video outputs cable to play media on a television or stereo hi-fi".
Hmmmmmm... first is Sony for the X Box 360, now is Apple for the Zune.. what's next?