A little less than a week after Apple introduced its new line of iPods, Creative Labs has responded with a Zen Micro update of its own, cutting prices and offering more options across the line. The Zen Micro is now available in three sizes; 4GB for $179.99 after $20 mail-in rebate, 5GB for $229.99 and 6GB for $249.99. Previously, Creative only offered a 5GB model which was priced at $249.99, so this update represents a modest price reduction for that model.

More interestingly, this puts the 4GB Zen Micro within striking range of the 1GB iPod Shuffle. Creative could be banking on the fact that for $30 more than a Shuffle, consumers will get 3GB more capacity and a large, backlit display which the Shuffle lacks. Apple’s iPod Shuffle 1GB model retails for $149.99.