Robbie Bach, president of the Entertainment and Devices Division at Microsoft, said at the company’s financial analysts meeting.

"We think of this in the hundreds of millions of dollars of investment" over several years, Bach said. "It is something that is going to take time. This is not a six-month initiative."

We would consider that confirmation that a serious push is on to take Apple out of the top spot. "hundreds of millions" is a drop in the bucket for Microsoft and if things heat up they have a huge cash war chest to destroy any competition.

Face facts. the Ipod is hot because of a slick marketing campaign at the right market. Take a look at the current earnings reports and you will see that advertising is down on ipod and up in the computer side but sales in computers has not kept up the same margins as sales on Ipod’s does with heavy marketing.

If Microsoft decides to push hard they have the money to crush everyone but Apple and put a serious dent in their lead at the top.

Bach didn’t offer new details on Zune but said creating a sense of community and making it easier to find new music are central to it. "We’re not just introducing Zune to do the same thing other people do," Bach said. Still, he said, the company expects it to take three to five years for the effort to really pay off.

We’re sure that hundreds of millions is more like the kickoff budget more than a an extended advertising campaign budget but we’ll see how well this 5 year plan works. If Microsoft is to take a lead in the portable device market the Zune will have to be a smashing success and first generation devices must offer reliable performance.

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