Earlier quoted context omitted.
Reading Infinite Games, they tell an anecdote about a Microsoft exec on a flight telling an Apple exec that the Zune was a way better portable music player than the iPod. The Apple exec was just “yup, you’re probably right” and then soon after the iPhone dropped
Zune was probably a better player. It was too late, and arrived when MS didn't much care. There are emails unearthed in various lawsuits where you can read Bill Gates screaming at his subordinates: "why the hell can't our partners like Sony and Creative create a similar device? Give them all, give them early access to everything, work with them". In the end MS felt compelled to make their own.
And they could listen to it 3 times in 3 days