Microsoft finally ready to flush Zune?

In a report by Richard Waters for The Financial Times, Microsoft CEO Steve Ballmer appears to cast considerable doubt on the future of the company’s Zune debacle.

Waters reports, “Mr Ballmer seemed all but ready to throw in the towel on the Zune mobile device, which has failed to gain ground on Apple’s iPod. But he suggested that the focus of competition in digital media was moving onto ground that Microsoft understands well: software.”

“He said that, with the market for dedicated portable media players in decline, the future lay in more ‘general purpose’ devices – such as Apple’s iPhone and touch,” Waters reports.

“Asked if Microsoft would counter with a ‘Zune Phone,’ Mr Ballmer said: ‘You should not anticipate that.’ He added that the company would stick to its strategy of developing software to support a range of mobile devices,” Waters reports. “That suggests that, if there is a future for Zune, it lies in planting the software and online service linked to the player in other devices.”

Full article here.

33 Comments

  1. In other Zune news, Consumerist.com published this story on Monday about a woman who returned her $400 custom Zune to Microsoft for repair, who then basically blew her off for three months, and then lost the Zune.

  2. I saw Ballmer’s keynote and it was almost embarassing how they briefly touched on the Zune’s performance and how “innovative” it was…….they they moved on to other stuff.

    Windows 7 had better be ALL THAT and then some!

  3. Windows Mobile 7 will have the Zune and Windows Live store available to third parties for inclusion into their mobile devices. But, it’s been rumored that the Microsoft is now planning to nake Zune and Live Store a required component for all Windows Mobile 7 devices.
    I’ve also seen rumors that the Zune will die as early as late spring 2009.

  4. “That suggests that, if there is a future for Zune, it lies in planting the software and online service linked to the player in other devices.”

    So they’re going back to Plays For Sure™? How many companies will sign on this time? Sadly, probably many.

  5. Sad to say, but software is their strength. If Vista is representative of 5 years of work and untold billions to develop, MS is in deep sh*t. Stockholders should be suing them for malfeasance. That Uncle Fenster looking stooge should resign and get a job at a car wash where he can use those snow-shovel sized hands to do something constructive.

  6. Nooooo R.B. just said they are super happy with their huge user base and all these cars putting Zune compatibility when he was on stage. They just added 12 people from Canada for their user base. Zune is at the tipping point of taking over the market. ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  7. Microsoft understands software?
    Now, THAT’S news!

    Does Ballmer understand anything?
    … anything, except the trajectory of a fork traveling from a plate to his mouth?

  8. Thanks for that link – it’s a wonderful story. “Thank you for buying our defective $500 product – we’ll jack you around for months then replace it with something worth half as much. Have a nice day.” How truly Microsoftian.

  9. Yeah, that subscription model is working out great…….Zune is great…….Doh!

    “The dedicated portable media devices”, in other words the portable CD player. Wow, Balmer just figure that out?

    “the focus of competition in digital media was moving onto ground that Microsoft understands well: software.” Doesn’t Balmer mean stealing, copying and screwing it’s partners and the public?

    Oh, I can’t wait until they kill it and then tell us how successful it was but they see more innovation in just making really great software and how they have been selling millions of phones and portable devices for years. That will be the most entertaining I have heard all year.

  10. I suspect we will see a new universal music format from Microsoft… something branded SurePlay or something like that. It will play music and video on all partnered devices and work with a variety of music distribution partners.

    Wait… ” width=”19″ height=”19″ alt=”hmmm” style=”border:0;” />

  11. Hammer what? My beautiful brown Zune? I was at two airports yesterday and Zunes were everywhere. I really think Microsoft might be onto something. I’ll tell you what, as a longtime Microsoft fan it’s pretty gratifying to see the explosion of Zunes, especially after the dark Windows me days in ’97. You MAC dorks have no idea.

    Anyway, do you really believe Ballmer when he says we shouldn’t expect a Zune Phone? Ballmer is the master. I expect you MAC lemmings to knocked off your smug and pretentious chairs when the innovative brown Zune Phone is released in a surprise announcement at WindowsWorld in the Moscone Center the first week of January, 2010.

    I’m a PC.

    Your potential. Our passion.™

  12. @ C1

    I almost forgot. What brand of safety goggles do you recommend I use when I smash your I-Phone? My plan is to hit it right in the center of the glass on the front for the first whack, then turn it over and slam the back with all my might.

    I want to make sure I have my vision for Windows 7.

    I’m a PC.

    Your potential. Our passion.™

  13. Zune Thang, thanks for the great news about seeing the Zunes at airports. I had heard that Zune owners were so embarassed some of them were planning to leave the country.

    And when it comes to fishing for suckers, I must admit Ballmer has the master bait.

    Now you were asking about the best brand of safety goggles, well try this pair. It has added features of protecting your nose and mouth as well from flying debris. Play it safe, this is the pair of glasses for you Zune Thang.

    And don’t settle on a second rate hammer. I know you will want the best.

  14. Either that wasn’t the real Zune Tang, or he knows the Zune is going down for good reason because that was a really pathetic couple of comments. There really wasn’t any sort of substance behind his “points.” It’s a shame, I usually enjoy laughing at his disillusions.

  15. @Me:

    Actually, it is the registered handle of da Zune Thang, and the usual “just you wait” yawn that has been shot down time and time again if you scan the archives.

    @Buster: Well they seemed to like my comment about the glasses, what did you do, tell Zuney to stick ’em where the Zune don’t shine, uh sun don’t shine (I forget the Zune doesn’t shine anywhere).

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