Microsoft bets on Xbox as it releases Zune service in Europe

Microsoft Corp. is expanding its Zune music and film download service to Europe, and betting that the user base for its Xbox games console will help it take on Apple Inc. to attract consumers.

The software, aimed at users of Windows computers, Xbox consoles, and smartphones with the forthcoming Windows Phone 7 operating system, will be available in France, Italy, Germany, and Spain this fall, the Redmond, Washington-based company said in an e-mailed statement. The service competes with Apple's iTunes and is currently available in the U.S.

"The Xbox is going to be a critical element of our strategy," Chris Lewis, Microsoft's vice-president for interactive entertainment in Europe, said by phone. "But we want consumers to be able to digest this on the product of their choice."

Microsoft is looking for ways to generate the kind of consumer buzz and sales that have benefitted Apple, Research In Motion Ltd.'s BlackBerry handset and Google Inc., the maker of the Android smartphone operating system. The Windows Phone 7 system it's releasing this fall will be initially targeted at high-end users, and the company is paying developers to create new programs for the platform.

Devices on which Zune services will be available in Europe won't include the media player of the same name, which Microsoft sells in the U.S. as a competitor to Apple's iPod. Lewis said the company has no plans to introduce the device in Europe.

Microsoft is partnering with local content producers such as Vivendi SA's StudioCanal unit and Germany's Constantin Film AG to provide offerings targeted at individual European markets, Lewis said.