Microsoft hints at Zune's future as it denies death of device

Comments

• I don’t doubt that many or even most Zune owners are satisfied with what they have. Here’s my thing: Apple dove into the MP3 market when that market was already well on its way to maturity. The iPod quickly made a big splash, and iTunes has played no small part in helping the iPod acquire a 70% market share. Apple did not engage in illegal, monopolistic business practices in order to achieve that level of prominence; nor did Steve Jobs hypnotize buyers, steering them towards the iPod.
  
  When the iPod was released in October of 2001, it succeeded during a recession caused by the terrorist attacks of 9/11. If the current economic climate adversely affected the Zune and other consumer products, then it stands to reason that it also adversely affected iPod sales. Yet, Apple reported a growth in iPod sales for the most recent quarter, versus a 54% drop in Zune revenues. How much better would the iPod have faired this quarter without the deepening recession?
  
  I believe that Microsoft and its investors need to re-evaluate the Zune with regard to how it affects other products, and how it affects shareholder interests. If I’m a Microsoft competitor — and I don’t believe that Apple and Microsoft compete in the sense that they appeal to very different groups of customers — then I truly hope that Microsoft continues to throw money and other resources at the Zune. Let them and their investors learn the hard way. Again.
  Posted by SkateNY, United States
• You could have used exactly the same arguments for why Microsoft should have abandoned the Xbox when the PS2 was the most prevalent games machine on the planet.
  
  But my reading of the situation at the moment is that XBox is riding high whereas the much technically superior PS3 is having a particularly bad time of it and Nintendo seemingly have a console in every house.
  
  It doesn't take much to turn the market on it's head, just a good product and competitive pricing.
  
  Posted by John B., UK
• I truly admit with SkateNY
  
  As you said, Microsoft should continue investing at the Zune in order to succeed. Companies such as Cowon or Samsung were no really famous for manufactuering MP3 players but they kept going.
  Now, both of them recently released a top-notch product with outstanding specs. Samsung YP-P3 and the Cowon S9, both products are not direct iPod competitors but both of them will be able to grab some of Apple's market share.
  I also heard that Sony will back of with their "Walkman"-only strategy instead they'll also product Apple gadgets.
  I'm not saying that's the way it is supposed to be but from my POV, the biggest problem for the Zune was to convince users from being an individual product. Honestly the Zune really doesnt look like tons of hours of intensive researches etc. :D Posted by g4rfi3ld, UK