I'm not sure how closely you're all following E3 (the big gaming convention going on this week in LA), but one of the tidbits of news dropped by some little company named Microsoft last night is Disney movies are now available for download on Xbox 360's Live Marketplace. Finally, just like all of us iTunes users have been doing for months, Xbox owners can enjoy Disney flicks via digital distribution.

But wait-- the Xbox flicks are available, right now... in HD. Wha? Is Microsoft's CEO the largest Disney shareholder and on their Board of Directors? Did someone from Microsoft run the animation company that turned Disney animation around? Why are Xbox 360 owners watching these movies in HD when we can't do the same on iTunes?

We've speculated before that HD movies would be coming to iTunes, but right now, Xbox 360 owners can see every single hair on Ariel's head, and iTunes purchasers cannot. What's wrong with this picture?

Thanks, James H.

Besides being snarky and asking why Microsoft bothered in the first place, I've been thinking about the more significant aspects of the Zune, such as what it means (and could mean) to the market and the culture of the industry. There is a lot to be said about the fact that Microsoft is paying a record label tax on every device sold and the terrifying precedent that sets, as well as the IP-trampling and DRM-wrapping Wi-Fi sharing feature. Through all this I realized that Microsoft *could* have a great product on their hands - if they got to working on some true innovation (instead of - at best - an unpolished gimmick), and cleaned out the criticism todo list. It wouldn't be easy, especially in light of the uphill battle that seems to be getting steeper by the week, but it could theoretically be done, and we all would be better off if it happened (remember: competition is good for you and me). After the break, I've listed a a few fundamental elements and features that could propel the Zune not simply into the position of a justifiable contender to the DAP throne, but that of a truly innovative and culturally significant product like the iPod has become.

Today, I fulfilled my dutiful obligations as an open-minded journalist (ha!)/hard-core masochist and purchased a Microsoft Zune to replace my SanDisk Sansa as my music subscription device of choice. (I am a fan of the subscription model, in case you're wondering.) The Zune device itself is truthfully pretty slick: the interface is responsive and intuitive, not to mention purdy. It's a little bulky, granted, but the outer-casing is smooth and it feels comfortable and "right" in the hand. The controls are a bit sloppy -- plasticky and noisy -- but they work as expected.

My real gripe here, that kinda ruins the deal for me and I'm sure for a lot of you, is the craptacular suckiness of the Zune Marketplace. First, as Engadget adequately reported: install is a pain. I had no errors, but just the amount of work involved was exhausting. Then I bought a Marketplace subscription, and lo-and-behold: some of my -- nay, most of my -- favorite bands are nowhere to be seen. And other albums I've searched for (ie, Radiohead) require that you purchase them, even if you have a subscription. (And the album price isn't even in dollars -- it's in Microsoft's convoluted points scheme.) Some albums -- ie, This Providence -- offer most of the songs for download, but the most popular (in this case, "The Road to Jericho...") you're only able to get if you actually buy the whole album. That leaves me asking: With all of these limitations, what the hell is the point of actually buying a subscription?

So not only have I graciously donated a buck to Universal for simply buying a Zune, they've decided to screw me over by sabotaging the $15/month subscription they're dreadfully eager to impose on customers.

I was cheering Microsoft on here: As I mentioned, I'm a fan of subscription services, and the Zune device isn't so bad. I wanted to see some decent competition, and I want to see Apple add a subscription option to iTunes. But they totally screwed this one up, and no amount of prettiness will save them. Microsoft, fix your Marketplace and your subscription details, then we'll talk. Until then -- stay away. Stay far, far away.

(Stay tuned for my Zune vs. iTunes comparison. Post any questions you'd like me to cover in the comments below.)