Microsoft has reduced its already comparatively low Zune HD prices, because bolster its attempts to compete with the iPod. The 16GB Zune HD has dropped in price from $220 to $190, and the 32GB Platinum Zune HD has fallen from $290 to $250.

These price cuts further boost the Zune’s advantage over the iPod touch line in terms of pricing, now the 32GB Zune HD $50 less than the 32GB iPod touch, and the 16GB Zune HD $10 less than the 8GB iPod touch. Yes; the Zune competitor for the 8GB iPod touch packs doubles the storage capacity of its rival, for $10 less. But who care?

While the Zune HD line boasts superior specs on paper, including a 3.3-inch OLED touch screen display and an Nvidia Tegra system on a chip, Microsoft was unable to put a dent in dominance of Apple over the MP3 player market. Users seem to value the overall experience of their devices rather than simple statistics. In the case of Apple vs. Microsoft, iTunes Store of Apple and iTunes’ seamless integration with Apple’s iPod has kept Apple customers spending more on products that offer this complete experience.

However, this price drop might be what some buyers on a tight budget are looking for during these rough economic times. Will the price drop help Microsoft move more Zunes?