Why Microsoft’s Zune is doomed to fail

20 years ago

“You have to hand it to Microsoft. The company knows how to create a buzz about a product. From all the noise about Zune, you would think the ‘iPod killer’ actually has a chance. Sadly for Microsoft, it won’t happen,” Stan Beer writes for iTWire.

“People point to Microsoft’s Xbox and Xbox 360 as proof that the company can successfully play in the hardware space. The question they need to consider, however, is how much money has Microsoft made from Xbox? The answer isn’t pretty,” Beer writes.

“Apple has always been a hardware and software company. Its entire history has consisted of a business model constructed around selling hardware and software in tightly bound packages. This is iPod and iTunes, Mac and Mac OSX. For Apple, it works spectacularly well,” Beer writes. “Microsoft is a pure software company. Its entire history has been built around selling software. It can’t make money doing anything else – not even on the internet.”

Beer writes, “The problem for Microsoft [is that] operating systems and office productivity software are gradually becoming obsolete commodities. Microsoft needs to find new areas in which to grow. That’s why we see Microsoft attempting a project like Zune. It’s a shot in the dark and it’s doomed to fail.”

Full article here.

[Thanks to MacDailyNews Reader “Steve J.” for the heads up.]

MacDailyNews Take: Mmmm… Beer gets it. BTW, if Microsoft’s intention was to throw the media off the Macintosh story with this “Zune” nonsense, it’s working pretty well, so far.

Related articles:
Bear Stearns analyst expects Apple to respond to Microsoft’s ‘challenge’ with new iPod innovations – July 24, 2006
Microsoft Zune? They should’ve called it the Microsoft ‘iClod’ – July 24, 2006
Enderle: Microsoft’s ‘iPod killer’ Zune is ‘brilliant strategy’ – July 24, 2006
Microsoft’s so-called ‘iPod killer’ Zune won’t zoom up the charts – July 23, 2006
Microsoft confirms ‘iPod Killer’ plans – July 21, 2006
Microsoft’s rumored ‘iPod killer’ poses little threat to Apple’s domination – July 18, 2006
Microsoft plans Super Bowl ad for ‘iPod killer’ – July 17, 2006
Sounds serious: Microsoft approaches iPod accessory makers for Zune would-be ‘iPod killer’ – July 12, 2006
Microsoft preps complete line of Xbox-branded digital-media products – July 11, 2006
Photo of Microsoft’s ‘iPod killer?’ – July 11, 2006
10 reasons why Microsoft’s ‘iPod killer’ will fail – July 11, 2006
Enderle on what it would take for Microsoft to kill Apple’s iPod – July 10, 2006
Microsoft: ‘iPod killer’ reports based on ‘speculation and rumors’ – July 07, 2006
Can Microsoft hit a fast moving target? Apple likely to debut wireless iPod this year – July 07, 2006
Analysts: Microsoft faces uphill fight to supplant Apple’s iPod+iTunes market dominance – July 07, 2006
Microsoft plans to convert iPod users by replacing iTMS songs with free WMA format songs – July 06, 2006
Microsoft to release wireless ‘iPod killer’ by Christmas to challenge Apple – July 05, 2006
Analyst Wu: Microsoft unlikely to dethrone Apple iPod+iTunes – June 21, 2006
Microsoft preps iPod+iTunes killer – June 19, 2006
Report: Microsoft readying Apple iPod+iTunes rival – June 16, 2006
Microsoft: No iPod killer planned – June 05, 2006
Microsoft, Toshiba, DoCoMo, Victor to develop Japan iPod+iTunes killer – June 02, 2006

Patent application shows iPod capable of live wireless video conferencing – June 13, 2006
Apple patent application filed for wireless iPod+iTunes distribution – May 04, 2006
Generator Research: Apple to Ship $4.2bn in Wireless iPods (WiPods) by 2010 – March 14, 2006
Ready for your wireless Apple iPod? – February 09, 2006
Wireless iPod? CSR and PortalPlayer to bring wireless connectivity to personal media players – February 08, 2006
Wireless Apple iPods coming in 2006? – December 09, 2005