Last tuesday, Apple announced that they will drop prices for its hard-drive based iPod to $249.00. It seems this price change caught Microsoft with surprise and analysts suspects that Microsoft has decided to forego announcing pricing for Zune.

According to betanews

Sources within Microsoft indicate that the company is taking a “we will not be undersold” approach in its pricing structure, and was likely to announce a price that was either the same or lower than that of a comparable iPod. Undercutting the iPod is a major goal of Microsoft’s upcoming effort, say these sources.