“Hindered by a failure to sell large numbers of digital music players, Microsoft is singing a new Zune,” Olga Kharif reports for BusinessWeek.
“A few weeks before releasing a new version of its MP3 player called Zune HD, Microsoft is taking extraordinary steps to court software developers to create applications for the device, which competes with Apple’s hugely successful iPod and iPhone,” Kharif reports. “One developer of a popular iPhone application for reading Twitter messages says Microsoft recently approached him about re-creating the software to run on Zune, with Microsoft footing the bill for development costs.”
“The programmer declined, but Microsoft’s offer speaks to the company’s legendary persistence at trying to make successes out of products that fail to excite customers the first or second time around. Along with Zune HD, Microsoft is making a Zune service available for delivering movies to Microsoft’s Xbox video game console,” Kharif reports. “A Zune-branded music service for the Xbox, cell phones, and PCs is in the works as well. ‘The business is entertainment,’ says Brian Seitz, group marketing manager with Microsoft Zune. ‘The mobile device or the MP3 player is just one screen that can use the service. To erase the iPod is not what the vision was. The business is the service.'”
Kharif reports, “Sales of Zunes have been meager. Microsoft has sold about 3 million Zunes in the player’s three years of availability. By comparison, Apple sold 10.2 million iPods between March and June of this year.”
MacDailyNews Note: Here’s a better comparison, Olga. It’s called a direct comparison. It tends to give the clearest perspective: In the last three years, Apple sold 159.124 million iPods plus 21.17 million iPhones (which, of course, also contain iPods) for a grand total of 180.294 million units.
Full article here.
MacDailyNews Take: Blatantly attempting to rewrite history will not make a success of the abject failure known as “Zune.” Apple kicked Microsoft’s ass without even trying.
If Microsoft had a real leader in charge, the brand name “Zune” would have been dropped long ago as all it does it hurt Microsoft by constantly highlighting the company’s penchant for poorly following Apple’s every move. That Microsoft seems happy to continue trumpeting “Zune” to its detriment is a testament to what happens when you let the sales guy try to run the company. Zune is a laughingstock failure that was extremely late to market, lacked compelling features and, in the hands of someone with even a modicum of competency, never would have been released, much less allowed to continue being fired off daily into Microsoft’s collective foot.
As always, Microsoft has foolishly showed its weak hand early while Apple stands ready to unveil this year’s new iPods and pricing very soon.
All that said, raise a glass: “May Steve Ballmer remain Microsoft’s CEO for as long as it takes!”
[Thanks to MacDailyNews Reader “James W.” for the heads up.]
Sounds a bit more like Hans from Inglorious Basterds… which may be the nick name you and I have garnered on this website.
I don’t think the name Zune has any stigma to it. MS just did not release and hype up the product as it should have. I think it should have been a worldwide release; pricing should have been $30-$50 cheaper than their iPod counterparts; and there should have been more songs, TV shows, and movies on the Marketplace. I think those things prevented Zune from entering mainstream.
You wrote, “Comment from: uclapril76
Hm, should Apple have stayed in the computer business and not ventured out to other ancillary business like portable media players and smartphones?
Some of these posts are made by REAL geniuses.”
Uhm, dude, the difference between Apple’s tiny share in computers and MS’s tiny share in MP3 players, is that Apple makes a good profit on their computers, while MS has always lost money on its Zune. Noone thinks Apple should get out of computers while it is making good profits. Alot of critics here think MS should get rid of the Zune because it loses money, and doesn’t appear that it will ever make money. Even the Xbox division has lost money the last 2 quarters, and most PC users think the Xbox division is successful. If losing money is success, no wonder those same people have no clue about what to do with the Zune.
Zuney Squirting goodness? Get the Brown Squirting Zune!!!!
ah so apple should have thrown the towel back in 1995 when macs weren’t making money? it was the loyal mac fanatics that kept apple afloat all that time steve jobs was banished from apple.
you gain loyal fans they will follow you and buy your products. that has happened with the xbox and it can happen with zune.
plus the money lost by MS on zune is tiny compared to its total revenues. i doubt bill gates is shaking in his pants.
I’ve seen 3 Zunes in the wild. All three were high school kids who bought a Zune because they wanted an mp3 player that wasn’t an iPod, and none of them ever found another Zune user to squirt with.
Hey, zuneinwild… maybe the IBM PC came before the Mac, but Apple’s original PC (personal computer) came way before the IBM PC… which, BTW, used an DOS IBM purchased from Bill Gates before Paul Allen had even closed the deal to buy that same DOS… talk about cutting it close there. Just think, if that little fast move hadn’t worked we wouldn’t be talking about Zunes at all… and the Portland Trailblazers would have a different owner and Gates would probably be selling Macs somewhere in a retail store…
“ah so apple should have thrown the towel back in 1995 when macs weren’t making money? it was the loyal mac fanatics that kept apple afloat all that time steve jobs was banished from apple.”
Alright, so who’s going to heroically swoop in and save the Zune? Is Microsoft going to attempt to buy Steve Jobs?
“you gain loyal fans they will follow you and buy your products. that has happened with the xbox and it can happen with zune.”
Xbox 360. A ~54% failure rate and a moneysucking black hole for Microsoft. They had to set aside 1 billion dollars for extended warranties alone. You think that’s something the Zune should aspire to? You want it to be an even more costly failure than it already is?
“plus the money lost by MS on zune is tiny compared to its total revenues. i doubt bill gates is shaking in his pants.”
Their total revenues are falling. The money they lose on the Zune may be marginal by itself, but when you add up the money they lose on the Xbox, the money they lose on Windows Vista, the money they lose on Windows Mobile, etc. etc. etc. the losses all start to pile up. Microsoft is throwing money at so many failed products at once that they can’t make up for it anymore.
@ uclapril76
> plus the money lost by MS on zune is tiny compared to its total revenues. i doubt bill gates is shaking in his pants.
money lost means revenue is lower than production cost, which mean MS is not getting its money back. how hard is that to comprehend?
Oh, and the first Personal Computer was made in 1976, which was The Apple I.
Okay pdxflint, this is a fun topic so try this on. (BTW, you make a great point) The Apple I was the first personal computer, but the term “personal computer” or PC for short was eventually synonymous with the IBM machines and eventually with machine running a Windows OS. Apple was the first PC, but IBM machines got the designation “PC”, but Apple’s continued full-court press in the personal computing market is proof that Zune should continue (albeit more effective marketing is needed @uclapril76).
Although iPod was not the first mp3 player on the market, all mp3 players are ubiquitously referred to as an iPod by many people. But, that does not mean that there are no comparable or better devices on the market.
Put aside opinions about “copy-cat”, “late to the dance”, “profitability” or anything else not relevant since none of us (that I know of) get paychecks from Apple or Microsoft and tell me one thing. Can anyone that has used both devices really say “The iPod is a far superior device to the Zune”? With the pending introduction of the Zune HD I will be very surprised at any “yes” that comes about. Base your answer on the primary merits of a PMP: Playing, storing, and accessing MEDIA.
(no fan boys in either direction need answer)
http://www.zunescene.com/comparison/
woot.
Good for you ZuneinWild. If you are happy with your Zune, I’m happy for you.
Now, Aren’t you supposed to be squirting someone?
BRAVO MDN! Enjoyable commentary.
One oddity in the reviewed article:
“Microsoft’s offer speaks to the company’s legendary persistence at trying to make successes out of products that fail to excite customers the first or second time around.”
Excuse me, but isn’t Microsoft on the 4th (fourth) DOA generation of Zunes? That’s what we call in the business a ‘failed product’. I’m surprised that even a marketing moron like Ballmer can’t get the hint.
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i dont understand any of these ‘squirting’ references… at least an insult means nothing unless it is understood by the party its being aimed at… =/
Coot, allow me to clean up the squirt.
One cannot squirt unless they have some one to squirt with or more appropriately “to”. In all occurrences a squirt must also be accepted by the party being squirted on… I mean “with”. A squirt will always have some substance…A squirt can never be empty or some might say that “a squirt must have some measure of thickness”. Finally a squirt can be a bit messy based on it’s limited shelf life… unless it is removed, you end up with a useless left over.
Technically speaking: The Wireless song sharing feature of the Zune was originally going to be marketed as squirting. That idea was killed prior to release of the hardware, but the term has lived in the hearts of Podiots the world over as a way to mock a decent (but not well executed) feature. Obviously the song share has to be between to wireless “visible” devices. The song “offer” has to be digitally accepted. The share has to be an actual audio file, but it gets messy when the file comes tagged with a 3-play DRM that disables the reply of the file after 3-plays… this leaving you with a useless shell that looks like a song you can play but just gives an expiration message when you access it on the hardware.
And to the gentle-person that asked if I should be squirting someone, I say… Though a trite little joke, it was well played. I would come up with a joke in reply, but I’m busy tagging a song I just heard on this FM station. This way I can download it via wi-fi connection form the Marketplace once it is done playing… Probably going to get the entire album since I have the ZUNE pass.
EXCELSIOR!!!!!