Analysts: Microsoft Zune may end up being a flop

“The big splash Microsoft is determined to make in the digital music player market this holiday may end up being a flop,” Grace Wong reports for CNNMoney.

“Five years after Apple launched its first iPod, Microsoft (Charts) is taking aim at the digital music market with its Zune player, which goes on sale Tuesday,” Wong reports. Industry experts, however, aren’t convinced the company will be able to take a bite out of Apple, which has a 70 percent share of the market for portable music players.”

“‘I’m very skeptical about its ability to take hold in a market that already has a dominant player. It doesn’t feel disruptive enough to gain a foothold,’ said Ted Schadler, an analyst at Forrester Research,” Wong reports.

Wong reports, “Many analysts aren’t buying into the idea of ‘community’ that Zune is built around… But communities don’t just spring up – there has to be something immediately valuable to users in order for them to take hold, Schadler said… before a Zune user can share music, they have to find a friend who also owns a Zune player. ‘That’s going to be a slow transition,’ said Shawny Chen, a research analyst for Current Analysis. She expects Zune to win over some consumers but doesn’t expect it to attract a huge following this season.”

Full article here.

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34 Comments

  1. It’s already failed. They totally botched the sharing feature (three days or three plays and it’s gone? Yeah, right. Sign me up), and the rent your music plan had already cratered by the time Apple launched the iPod, let alone the iTMS.

    You can tell that MS themselves don’t even care enough to pretend it has a chance.

    -jcr

  2. the folks over @ http://www.zunescene.com, feel that it stands a chance to overthrow our much beloved iPod..I’ve frequented such site, and have gone as far as attempting to educate the people there, however they seem persistent. Sadly, enough I’ve even found some “mac users”, who are ready to switch to Zune (should it become compatible with Mac)….I for one love my iPod and iTunes, I have no intention on abandoning my iPod..However, I must voice that if Apple doesn’t get off their collective asses and make a dramatic addition to the iPod, then our iPod just might lose momentum. As it is, iPod fans — are not as diehard as Mac fans — PC users who bought a iPod – I’m sure will be first to abandon the iPod……mind you, MANY PC users have bought iPods and have no real loyalty to the iPod or Apple.

    Anyways, check out this link and tell me what y’all think:

    http://crunchgear.com/2006/11/07/zune-gasm-hands-on-with-the-zune/

  3. I can’t think of the most amusing term for failures like this.
    There are so many to choose from.

    You could say “My car totally Origamai’d”
    Or “Those cheap shoes are gonna Zune on ya.”
    Or how about “Gigli 2 is gonna Vista bigtime.”

    Keep ’em coming, Redmond. If you open a window you might hear me laughing.

    -c

    MW: ‘force’ (is strong with this one… Oh wait, it’s Jar Jar)

  4. There is no Zune “community building” feature. Period. End of story. Poorly implemented temporary sharing schtick is not equal to a “community”. Sheesh! Talk about over playing something.

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