“Microsoft Corp. said on Thursday its new Zune music player will be sold at a price matching Apple Computer Inc.’s market-leading iPod and, as a result, lose money this holiday season,” Reuters reports.
“Microsoft’s 30-gigabyte Zune will retail for $249.99 — 99 cents higher than the iPod with the same amount of storage — when it goes on sale November 14. Songs available for download at the Zune Marketplace service will cost about 99 cents a song, on par with prices at Apple’s iTunes, Microsoft said,” Reuters reports. “The world’s largest software maker faces an uphill climb in trying to topple the popular iPod after conceding a five-year head start to Apple’s media player.”
MacDailyNews Take: Microsoft didn’t concede a thing. They tried PlaysForSure and got their collective ass handed to them by Apple.
Reuters continues, “Microsoft said it needed to put a comparable price on Zune, even if it meant that the company will suffer a loss from the device’s sales this holiday season.”
“The rectangular Zune media player has a round click wheel and is similar in appearance to the iPod, though slightly bulkier and has a larger 3-inch screen,” Reuters reports.
MacDailyNews Note: Zune “features” a fake click wheel that is really just a four-way rocker switch that’s presumably intended to follow the usual Microsoft strategy of trying to delude the buying public with products that are reminiscent of Apple innovations.
Reuters continues, “The music player is the first step in creating a new brand of portable devices, according to Microsoft officials, who also said a Zune phone is in the works… Microsoft said it will initially sell only music — and no video — at the Zune Marketplace. The company said it was negotiating with major record companies and labels.”
Full article here.
Related articles:
How Microsoft’s Zune can kill Apple’s iPod – September 21, 2006
Microsoft’s Zune insanity – September 21, 2006
The Microsoft Zune 1.0 dud – September 20, 2006
Microsoft’s underwhelming Zune a ‘viral DRM’ device – September 18, 2006
SanDisk teams with RealNetworks against new common foe: Microsoft Zune – September 18, 2006
Creative does Apple’s dirty work by immediately attacking Microsoft’s Zune – September 17, 2006
Motley Fool’s Jayson: Microsoft’s ‘just plain ugly’ Zune a meager offering, not an iPod killer – September 15, 2006
What’s in a name? ‘Zune’ a French-Canadian euphemism for penis or vagina – September 15, 2006
Crave at CNET: ‘Microsoft Zune, all the excitement that brown can bring’ – September 15, 2006
Microsoft’s Zune underwhelms – September 15, 2006
Enderle: Microsoft Zune ‘a design mistake’ – September 15, 2006
Microsoft hypocrisy exposed with Zune: What ever happened to ‘choice?’ – September 14, 2006
Analyst: Microsoft Zune with fake scroll wheel ‘hardly an Apple iPod killer’ – September 14, 2006
Analyst: Microsoft Zune won’t spoil Apple’s biggest iPod Christmas ever – September 14, 2006
Microsoft unveils Zune 30GB player, Zune Marketplace; declines to disclose prices – September 14, 2006
Analyst: Microsoft’s Zune an ‘underwhelming’ repackaged Toshiba Gigabeat; no threat to Apple iPod – August 30, 2006
Microsoft confirms brick-like Zune to be made by Toshiba – August 25, 2006
Microsoft Zune is chunky brick made by Toshiba – August 25, 2006
Microsoft to spend hundreds of millions, several years on Zune trying to catch Apple iPod+iTunes – July 27, 2006
Zune: Apple cannot lose. Microsoft cannot win. – July 26, 2006
Computerworld review: ‘Apple’s new iPods are better than ever’ – September 27, 2006
PC Magazine’s 19th Annual Readers’ Choice Awards for MP3 players: Apple iPod line – September 25, 2006
USA Today reviews new Apple iPod nanos, updated iPods, iTunes 7 (each earns 4 stars out of 4) – September 21, 2006
Time Magazine’s Gadget of the Week: Apple iPod 80GB – September 21, 2006
CNET Editor’s Choice: Apple fifth-gen updated iPod – ‘best, most attractive iPod to date’ – September 20, 2006
Disney’s remarkable 1st week iTunes movies sales should have studios clambering aboard Apple train – September 20, 2006
Disney sells 125,000 movie downloads via Apple’s iTunes Store in first week – September 19, 2006
PC Magazine review: iTunes 7 ‘Apple’s best effort yet’ (4 stars out of 5) – September 15, 2006
CNET Editor’s Pick: Apple’s new 2G iPod nano – ‘sure to be top choice among wide range of users’ – September 14, 2006
Apple debuts new iPod in 30GB and 80GB with Hollywood movies, games and new lower price – September 12, 2006
Apple intros new iPod nano with new aluminum design in five colors and 24-hour battery life – September 12, 2006
Apple unveils new iPod shuffle: world’s smallest digital music player – September 12, 2006
Apple debuts iTunes 7 – September 12, 2006
Apple will not be shipping a 6G iPod video before MWSF ’07.
HOWEVER, Apple could be wagging the dog for M$, and have it’s new iPod video ready to go, waiting in the wings for a launch in October…
The unlikely, but intriguing scenario goes like this:
1. Apple lowers the price of the slightly rev’d iPod video’s to $249 and $349.
2. M$ is caught off guard by the price drop and is forced to bleed more bank by matching the price (M$ never wins by being an elete, expensive, classy product).
3. Apple launches the 6G iPod – calling it the “vPod” (pick a name), with price points coming in at $299 and $399.
Now what does M$ counter with? Nodda, and M$ winds up with 2, may be 3 million, Zunes on disti shelves, and big troubles figuring out what to do starting in Q1 ’07.
But again, not likely to happen.
I bet a shitload of folk take that little sucker back and spend their money on a iPod after they use it for a few minutes.
Baz
Should be $250.00 because it’s payable to the purchaser, no? That’d be the way to move product!
Unfortunately, most people are sheep and don’t think. We have to get used to the facts that when a salesman says…”it has a bigger screen and WiFi”, that it will get them some sales. Also, like the chocolate phone, the shiny brown color has some appeal to some people and will also get them some sales. There is a small slice ot the pie here for them, and businesswise, Micro$oft knows this. This is good for us already, as we have seen a price drop, and Apple knows their future relies on an even better iPod to come. I welcome and look forward to the results of this challenge. I still am disappointed that there is no $99 nano, yet. I think the $99 price point is very important to average folks.
Besides economy of scale, MS has to pay Toshiba for the devices at their markup. Apple only pays the OEM (Foxconn, etc.) at a much lower rate. My guess is 20-35% margin on the iPods while Toshiba is probably charging MS $240-280 for the Zune.
Also, don’t forget about having to pay off Creative for the patent on menu navigation. That’s one more item on MS’s expense sheet. Apple, meanwhile, has already settled with Creative and will stand to get a cut of whatever MS has to pay. So Apple will, in a roundabout way, make a little money from Zune sales. All five of them.
The brown Zune looks like a chunky turd.
Nice one Satan…nice.
“del rossi”, the reason only iPods are allowed to attach to iTunes is because iTunes controls the FairPlay DRM much like a traffic cop. There is no DRM code on the downloaded iTunesStore songs or on the songs within the iPod. This results in much simpler iPod operating system and faster download on the iTS side. But, iTunes does attach the DRM while the song is on the computer’s hard drive where necessary.
Your iTunes, with all of the speed and power of your computer, handles the complex who-gets-what of DRM. Because the music in the music device does not have the DRM, iTunes cannot legally download the unprotected music to another MP3 player. The exception being that it is legal to make a CD copy for yourself, and it will not have the DRM. Apparently, Itunes is smart enough to know when it is sending it to a CD (no large risk for mass duplication), and too so smart to know the difference if it is going to an MP3 player or being routed directly to another computer via USB (very large risk of mass duplication).
If Apple went the Microsoft route, then all MP3 players would have to know how to handle all current and future DRM standards from various companies (Apple FairPlay, MS PlaysForSure, MS Zune, etc.) The confusion of your particular player playing some DRMs and not others would be a nightmare… well, actually, that is exactly what Microsoft is facing now with Zune. Apple doesn’t want to jump into that mess just so you can save $50 on an MP3 player with built-in FM radio.
Much like using Mac on Apple computers, you don’t have much choice about MP3 players and iTunes. Apple’s user-interface decision favored making high quality products for their own limited universe rather than making inferior products that can communicate with everyone else.
Did anyone catch that last paragraph? “…a Zune phone is in the works… ” That just makes me giddy!
Oh the humanity! I can hardly contain myself. I had heard this somewhere else and thot it was a joke. Brown phone anyone? (Darn it, Verizon is already using “Chocolate as a name.)
MS might have won the OS battle but it is getting whooped when it comes to the media standards battle.
This Zune thing really is going to become a black hole for MS $$$.
Apple really should add an FM tuner. Why not???
Is there no market M$ thinks they should stay out of. On minute they are taking on Google and Yahoo, the next minute they are taking on MySpace and Facebook.Then Apple. Next maybe Sears and washer and dryers.
Harryhood…
Because FM is being read the last rites in favour of DAB and other standards.
I will be getting one. I like the features, I love the design, and for the price you just can’t beat what it’s able to do out of the box. I rarely buy music from the iTunes store so all of my stuff will work on there
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If Apple brought out an iPod which did all that for that price I would get one instead, but Apple isn’t doing that are they.
Category Zune 30Gb iPod 30Gb iPod 80Gb
Price 249.99 249 349
Storage 30Gb 30Gb 80Gb
Wi-Fi YES none none very restrictive — learn more about, before you believe the hype.
File Sharing YES none none same as WiFi — very restrictive. Makes no sense.
Landscape Video YES none none landscape? Is this suppose to be widescreen?
Portrait Video YES YES YES
FM tuner YES none none FM tuners — the ever elusive, question is when and how often will you find a signal to make thi feature worthwhile
Preloaded Audio YES none none umm, preloaded with what? Sorry, I’ll load what I want – thanks though.
Preloaded Video YES none none umm, preloaded with what? Sorry, I’ll load what I want – thanks though.
Custom Background YES none none please..is this really worth making the device, not only heavier than a 80gb iPod – but also thicker!
Gapless Playback YES YES YES touche’
Manufacturer Japanese Chinese Chinese why does this matter?
Screen Size 3″ 2.5″ 2.5″ 1/2″ bigger — translates into heavier/bulkier item, not thanks.
USB Version 2 2 2
Colors White,Black, Brown White, Black White, Black brown? Gross.
Scroll Wheel NONE YES YES wanna be scroll wheel, lol.
Tactile Control YES none none tactile control – fancy for cheap ass iPod rip off.
Online Service ZUNE MARKETPLACE iTunes iTunes Zune Market, what? iTunes since 2001
Podcast Playback YES YES YES Guess who popularized Podcasting?
Battery Li-Ion Li-Ion Li-Ion
Xbox Marketplace Intergration YES none none Xbox? And what about PS3? PSP?
Unique Online Tag Zunetag none none Zunetag?
3rd Party Accessories YES YES YES 3rd party…you’ve killed the Playforsure idea..
Social networking YES none none battery killer – worthless technology.
Weight 5.6 ounces 4.8 ounces 5.5 ounces gosh, wider than a 80Gb iPod…Zune is only a 30gb.
Width 2.4″ 2.4″ 2.4″
Height 4.4″ 4.1″ 4.1″ taller than either iPod’s too!
Depth 0.58″ .43″ .55″ THICKER than a 80Gb iPod!! OMG…
Official Inside News Blog(s) YES none none more junk mail..thanks.
Compatibility PC Mac,PC Mac,PC everyone is invited! Mac’s and PC’s!
Replaceable Batteries NO NO NO smart move.
Semi-Transparent Case YES none none eh?
Special Edition none U2 U2 the Brown is the special edition…Turd edition.
Vendor Microsoft Apple Apple look towards the most innovative company.
other”brand family” products none Nano,Shuffle Nano,Shuffle Zune 1, iPod 2, iPod nano 3 (various colors; 24hr battery), shuffle 1.
Headphones earbud earbud earbud
Battery Life ? 14hr music/3.5hrs video 20hrs music/6.5hrs video
Time to fully charge ? 4hrs 4hrs
Market Leader NO YES YES
Leader in Car Intergration NO YES YES
Number sold 0 Worldwide 60 million plus Worldwide
del rossi: My understanding is that certain other PMPs will work with iTunes, just not with the iTunes Store. I remember people talking about using their iRiver players with iTunes way back when.
Mind you, I haven’t heard anyone mention that for several iTunes revisions, so I don’t if it’s still true. iTunes + iPod have added a lot of specialized functions, like video and podcasts, since then.
This BS is not worth zuning in to.
If Paul Thurrott thinks Microsoft is making a big mistake, we better watch out. He’s about the worst at predicting the future.
Gimme Zuuuunnnne…. ooh, what long knobs! Sucks up music and then flops it out warm and brown…. Ooh love my zzzzzzuuuunnne…..
Ok, let’s all hope that this Zune thing dies a quick and painful death. BUT, don’t forget that the Zune includes an FM receiver. That’s worth $50 at Apple…
Also, why is it that reviewers always miss the point that while the Zune’s screen is a half inch bigger, it has the same number of pixels as the iPod? Ergo, you don’t see any more, the pictures are just slightly larger because the pixels are larger.
Will people ever learn? I suspect that thousands of lemmings will see MicroSoft on the box and buy it, learn the hard way, and (if they’re lucky enough to ever have experienced an iPod), come back to Apple.
If I were a Microsoft invester/shareholder, I would be VERY worried….
“(Darn it, Verizon is already using “Chocolate as a name.)”
That leaves µ$oft with the choice of ‘Shitbox’, which, as I’m sure you will agree, is apt.
Got my new 8 gig Nano today. Real nice. Just a warning though about the aluminum case – nice construction, but very slippery.
Got my new 8 gig Nano today. Real nice. Just a warning though about the aluminum case – nice construction, but very slippery.
not everyone shops regularly at the iTunes store, but for those who do (like me) the Zune Marketplace (at least the screenshot I saw) is not going to be optimal.
The Zune store like MTV urge is trying to be a magazine, and/or a tastemaker. It’s offensive to me. The front page should have very little prose. iTunes has this nailed.
harryhood,
Why listen to low quality FM music, when you can have much better from your CD collection?
If someone wants a small FM radio with headsets, they can be purchased for $5-$15 at Walmart or Target.
It should sound just as good as an iPod does with the add on FM tuner.
zune $249.99
zune marketplace 4 songs =$3.96
zune to be gone? priceless.
MW: woman as in even a stupid woman wouldnt buy one
del rossi um wtf are you talkin about? zune only works for the zune market place and windowz so it is essentially in the same boat as ipods but they are bigger and look like…um sh*t. and have to use windbloze so your friends are….stoned? i dunno…i have yet to buy a music player but if i do it wont be a zune especially not a brown one. sheesh pink might be the new black but im heterosexual and am not gonna go prancing around like a homosexual in a pink shirt just because some fashion moron told me i could. brown looks like ass there i said it. black white and colors is great but brown? i dont think so. that means that i wont be buying a pink ipod but my girlfriend will and maybe a couple gay guys too. maybe that is why del rossi wants to get one he likes brown.