In wake of Zune, Microsoft ‘partners’ consider abandoning PlaysForSure

“Microsoft’s forthcoming ‘family of hardware and software products’ under the name Zune came as a bombshell to many companies when the rumors initially started flying, especially since MS had previously denied that the move was even on the roadmap,” Mike Kobrin writes for PC Magazine.

“I can certainly feel the backlash brewing among the current non-Apple device makers, who are basically about to be cut loose on their own. Some are talking about abandoning PlaysForSure as a platform, since Microsoft gets that licensing money. But some, like iriver, have really committed to particular online services (URGE in iriver’s case), and I think that when the dust settles, this may be the new paradigm. As hardware companies and music-service providers continue to pair off, we may see a gradual growing together between partners to the point where there’s an overlap in look and feel,” Kobrin writes.

“I’ve never been particularly impressed with Windows Media Player as a sync and music-management application, and that has not changed with what I’ve seen in WMP 11 (though others seem to disagree). Thankfully, the Zune brand will start from scratch and not use Windows Mobile or WMP, so at least Microsoft has a fighting chance in that regard,” Kobrin writes. “One major consideration is that video will play a key role in the Zune brand, and if MS can corner the market on movie content—not just TV shows—before Apple dives in fully (which may be sooner than you think), that may make a crucial difference. The Zune’s rumored limited gaming capabilities, however, are not likely to play a major role in the race. Another thing going for the first Zune product is Wi-Fi capability, which may dovetail nicely with an MS music store for over-the-air downloads, though it’s still unclear whether consumers on a large scale will see this as a bonus or a gimmick.”

As for Microsoft’s chances of taking a sizeable chunk of the market, Kobrin says he is “cautiously optimistic” because of “marketing.” Kobrin writes, “Most importantly, though, I hope the Zune brand doesn’t suffer from the same delays as Vista and actually makes it to market in time for the holidays.”

Full article here.
Zune is another Microsoft product that the market hasn’t shown any signs of needing or wanting. Mac and Windows users are already served very well with Apple’s iPod+iTunes — the only major player line and online service to offer equal compatibility to both major platforms. Zune isn’t going to be a success simply because Microsoft (and PC Mag wag Kobrin) wishes it to be so, regardless of how much or how it markets the thing.

People vastly overestimate Microsoft’s abilities constantly. Apple has the unbeaten track record here, not Microsoft. In fact, Apple’s iPod+iTunes should be up on charges of serial murder for the dead would-be “iPod killers” and “iTunes killers” that are piling up all over. Of course, Zune may well top the also-ran “Microsoft partners” and capture most of Apple’s leftovers — hardly a difficult accomplishment judging by the competition.

Regardless, CEO’s of many struggling MP3 player makers and online music outfits must be asking themselves today, “With ‘partners’ like Microsoft, who needs enemies?” In the future, other companies would do well to remember how Microsoft “partners” before potentially signing their companies’ lives away.

Related articles:
Wi-Fi seen limiting battery life on Microsoft’s Zune – July 24, 2006
Why Microsoft’s Zune is doomed to fail – July 24, 2006
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

More blood on Apple iTunes Music Store’s play button: MyCokeMusic is dead – June 20, 2006
More blood on Apple iPod’s Click Wheel: iRiver gives up on digital media player market – May 23, 2006
More blood on Apple iPod’s Click Wheel: Sony’s Walkman Bean is cooked – February 13, 2006
More blood on Apple iPod’s Click Wheel: Dell dumps ‘DJ’ hard-drive MP3 player line – February 04, 2006
More blood on Apple iPod’s Click Wheel: iRiver pulling out of Europe? – February 01, 2006
More blood on Apple iPod’s Click Wheel: Thomson gives up on MP3 player, CE markets – December 12, 2005
More blood on Apple iPod’s Click Wheel: BenQ withdraws from MP3 player markets – November 28, 2005
More blood on Apple iPod’s Click Wheel: Olympus halts production of portable digital music players – November 09, 2005
More blood on Apple iPod’s Click Wheel: Rio is dead – August 26, 2005
Apple’s iPod has blood on its Click Wheel: Virgin Electronics is dead – March 08, 2005
Apple’s iTunes Music Store has blood on its play button: BuyMusic.com is dead – March 28, 2004

41 Comments

  1. WiFi will only suck battery while it’s in use. And not much, if they mean Bluetooth rather than 802.11! My iBook has Airport (WiFi). It doesn’t use much battery unless I’m connected to a WiFi station with it.

    The market numbers I’ve seen are all above 70% for the iPod, not including the incursion of cell phones into the market. And … cell phones may be able to play MP3s, that doesn’t make them “MP3 players”. My iPod can play all day long and a shuffle can play as long as most people can exercise (longer, with repeats), where do phones stand?

    As for why MS is doing this … perhaps because they see the vPod (that tablet-sized video-player with the “touchless scroll-wheel”) coming and want to head it off at the pass by getting a) movies and b) WiFi out there ahead of Apple. Apple has been enjoying the profits of selling to the top end of the computer and MP3 player markets for a while now … MS likes profit above all.

  2. Hey Peter

    So, i forego the computer and plug the thing into a ubiquitous wall socket.

    Then, I assume, I purchase my entire music library from Microsoft, download it wirelessly, and store it on my Zune. No facility to RIP CD’s, right?

    Then, lets say I lose my Zune, or it gets ripped off, or it overheats and bursts into flames, or the hard drive craps out. Then wha? No computer to sync to, so I get to pay for and download my entire music collection again on my brand new/repaired Zune.

    Wait a minute… that’s brilliant.

    Crappy hardware + No computer to sync to + Paid music downloads + inevitable catastrophic failure or loss + Idiots who’ll buy another Zune + requirement to repurchase music = Perpetual profit stream

    That’s why Microsoft rules!

  3. So Zune is going to use its own jukebox software instead of WiMP? Gosh, I wonder how it’s going to look. How about playlists in the left column, and songs in the right, some sort of “party mode,” circular buttons, special playlists that select songs based on certain crite–

    What?

    What’s that you say?

    Drat.

  4. On screwing Microsoft with WMA
    I’m assuming you will have to buy a Zune to take advantage of the free WMA songs (if they exist) from Microsoft. In that case, make sure you get a good return policy. On the other hand, if MS is thinking, you may need to send in your UPC and receipt as a WMA rebate type program and will then have to sell your Zune on eBay.

    On available market share for Zune
    To determine how much market share is available for the Zune you would need to know the number of iPod owners using the iTMS as their source of music. Even then, some may switch if the free WMA is true. Otherwise, the iPod suffers the same fate as a cell phone – If all brands work with my service provider (Ripped CDs and pirated MP3s) I can use whichever brand of device I like. This makes switching from an iPod easy. It is entirely possible that 90% of personal music device sales could go to Zune this holiday season.

    Who am I kidding. Microsoft is destroying the entire non-iPod market by adding confusion.

  5. Hey, my iPod works fine.

    Why should I spend over $100 just to get an MS-branded MP3 player?

    Sure, I got zillions in legally downloaded songs, but they’re only 99¢ per pop, not a freakin’ C-note.

    I already made my purchase. I have no reason to switch.

    And how long will MS keep their alleged “we’ll pay for you to switch your songs to Zune?” Will they be doing it in two years when it’s time to upgrade my iPod?

    Oh, and considering that MS loses money on every XBox they sell, I wonder how much they’ll lose on each Zune?

    Ha! Buy a Zune to help bankrupt MS?

  6. > Therefor, wifi syncing does NOT eliminate the “must plug the Zune into something” step…

    It must be plugged into something, but why does that something have to be a computer? Heck, plug it into a iPod Hi-Fi type speaker set! Always powered AND always synced.

    > So your life is so damn complex you just can possibly plug one cord in? This is un-frikin’-real.

    Wow, glad you weren’t around when Apple was thinking up “Airport”.

    Peter, DLMeyer,
    Good points, and more for DLMeyer, I wouldn’t be surprised if this was Microsoft making sure that if there were to be only two players in the DAP arena, that one was Microsoft. The numbers look like it’s headed for Apple and Sandisk.

  7. The reason you don’t see WiFi in an iPod is that WiMAX is being built out as we speak. Buy a Zune and your wireless technology will be obsolete within months. But since when did MS worry about such things?

  8. From: The VERY Satirical Realist
    Jul 25, 06 – 12:11 pm, But then again, history could repeat itself….

    If you’re talking about the OS wars of the 80s, you’d be wrong in comparing the two. iPods and the iTMS work on both Macs and PCs.

    The only way M$ would win this is IF they gave it away for free, how long could they keep that going without looking criminal? Besides I think Jobs would just open up FairPlay for licensing to all MP3 player manufacturers if things got to bad.

  9. How about this:

    Creative and Apple settle their Patent lawsuit, and in it’s place Creative agrees to license Apple’s DRM. Apple extends the same courtesy to Sony for their Sony PSP and players. Apple’s DRM becomes the most open DRM solution out there silencing all their detractors (i.e. EU, etc…). Instead Microsoft’s solution will be considered a monopoly. Go figure ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

    Apple still has the right to develop unique hardware solutions that differentiate themselves from their partners, while selling tons more iTunes.

    I also believe Apple should go with a pay per monthly service again to answer detractors.

  10. This is classic Microsoft. Pre-announce vaporware to spread FUD. Throw their competition off their game plans. Freeze consumers into delaying purchases.

    Everybody that wants a Zune, raise your hands. Everybody else, just change the subject.

  11. Why WI-FI? I understand why WI-FI is so cool for laptop computers; continuous network connectivity without a wire is a great benefit. Why does a music player device need it? It doesn’t. A music player device should be as small as possible, as light as possible, and have the longest possible battery life… All sacrificed to add WI-FI, which does not help it perform its primary function – PLAY MUSIC.

    So tell me this… If a home has WI-FI, isn’t it a given that this home also has a Mac or PC. If there’s a Mac or PC in the home, why would the user need a WI-FI enabled music player to purchase music directly from the device, using a tiny screen and awkward interface? Is it such a burden to connect one wire from device to the computer once every few days to sync the media library? You’ll still have to connect it to charge the battery. If it has WI-FI, you’ll probably have to connect to charge once every few HOURS. How does the user add their own music collection on CD to the WI-FI device? or does MS expect that the user will buy ALL of their songs from its online store? And even if they do, how does the user backup up online purchases, in case the device is lost or broken?

    Everyone seems to want a WI-FI iPod, but what’s the big deal? I don’t want it. Tell me why I should want it…

  12. > A music player device should be as small as possible, as light as possible, and have the longest possible battery life

    Very interesting that this is PRECISELY where Windows compatible DAP’s were going for YEARS when the iPod was larger, heavier and had a shorter battery life than the competition. This infers that “ease of use” can easily trump your requirements.

    > You’ll still have to connect it to charge the battery
    > you’ll probably have to connect to charge once every few HOURS

    Not if it’s connected to a powered speaker set.

    >How does the user add their own music collection on CD to the WI-FI device

    Rip it on your computer. After complete, it would sync wirelessly. Now you’ve got the library on your computer and your portable device.

    > Tell me why I should want it.

    You DON’T want it. God meant for Wi-Fi to be used for an internet connection and THAT’S ALL! All these newfangled uses like Bonjour is just there to confuse and befuddle you!

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