After a very dismal week at Microsoft, the company posted its Q-10 earnings late Friday afternoon. The Zune platform posted a revenue decrease of nearly $100 million, or 54%. Over the weekend critics all around the blogosphere have been calling for Microsoft to give up on the Zune. Adam Suhn, director of marketing for the Zune platform, told the Seattle Pi that several already known factors led up to the huge lose for the company. "Everyone knows that the economy is not what it was a year ago and that [it] is hurting some folks", and later went on to say "So I think those are things that affected everybody's sales, including Apple." Apple's iPod platform posted a 16% revenue decrease last quarter, along with various other MP3 device manufacturers.
Suhn then announced that Microsoft was not going to give up on the Zune platform, and that the company was right on track on delivering the next generation of Zune software and hardware. Microsoft is on the road to delivering a new lineup by the end of this calender year, and is planning "fast and furious[ly]".
Suhn also told PaidContent that Microsoft was looking beyond the Zune device and has a "broader vision than just selling MP3 players". Microsoft is continuing to invest in centralized entertainment experiences that are brought together by the Zune software, that will not only be available to Zune device owners but for "other 'tuners' as well". He noted that "we are in this business for the long term and [are] committed to it".
With the global economy in the slumps, and consumer spending down more now than in December, can the Zune rebound from the loss? Microsoft is apparently not going to give up on the Zune platform anytime soon, and with companies like Apple announcing that songs in the iTunes store are soon to be DRM-free, what kind of innovation is going to be required for Microsoft to firmly make a stance in the MP3 market?
The Zune is subsidized by the music store. Since they can only legally operate one in the US and Canada (for now), they have no reason to sell it outside of there. I got my Zune 30 (it was never released here in Canada) through some gray market store...and all over the packaging it said "US ONLY."
The "social" idea is just great for finding new music. I've got my friends list full with ppl who share the same interest in music and are RL friends. Whenever my Zune sync's with my computer, it also sync's with my friends most recent plays and top songs. Its really quite neat.
One thing I want MS to do is link the Zune store AND the Xbox Live Store together. Xbox live has videos, zune has music, just bring the together in one package.
Also allow users to transfer d/led videos from Xbox Live to their Zune so they can watch them, I bet you'd get a big jump in Zune sales if you use it with the Xbox 360 that way.
Also allow users to transfer d/led videos from Xbox Live to their Zune so they can watch them, I bet you'd get a big jump in Zune sales if you use it with the Xbox 360 that way.
At CES one of the speakers announced big changes for the Zune so expect better connection between it and the Xbox 360.
Personally I don't see much sense in buying a portable device to just play music or movies. I can have all of that integrated into a mobile phone with the advantages of using it to make phone calls, access the Web and e-mail, take pictures and record with its camera, watch TV, (...). All in one single device. (y)
Portable media players have no future.
Sure, the music is great... but I've tried a LOT of PMP and Zune is my personal favorite. Plus the Zune music player software for Windows has a solid look and feel. I recommend it to people who don't have a Zune PMP (yet).
Nope.
No, because it only affected the Zune 30 model, which they discontinued about a year ago.
- Bigger screen;
- Big Album Art (I love big album art);
- Find Songs by Genre > Artist;
- Shake Shuffle
http://www.youtube.com/watch?v=VJc6e-IxqFs
If I would buy a flash I would chose a nano, but there Is no way I will get one, I am still waiting for a 200gb + Zune.
- Nano is .2" bigger. Whoop-dee-doo
- Eh? Zune's is pretty damn big.
- Must be good for you; I don't need it.
- See above.
I chose a Zune because:
- I don't have the retarded software glitches on the device I did with the Nano.
- I don't have the retarded software installed on my computer (iTunes).
- I like the interface better.
To each their own, I guess.
- Bigger screen;
- Big Album Art (I love big album art);
- Find Songs by Genre > Artist;
- Shake Shuffle
- By only 0.2 inches.
- The Zune has big album art as well. They recommend you stick at least 500x500 covers onto your albums for the best viewing.
- Umm, you can do this on the Zune as well.
- Fair point, but the new Nanos are a year newer than the flash Zunes, so it's had time to implement the accelerometer.
Where Apple has a variety of devices with differing features, the Zune is basically one device. Yes, there is a flash based device, but it offers the exact same features as the HDD device.
the iTunes/iPod business model is based on hardware sales - that is why there are so many devices, new models, etc. and why Zune adds/removes features with firmware updates.
@MightyJordan, The album art on the Nano sems bigger to me.. just like the 120gb Zune;
@eth3l, for sure one day the zune will introduce touch models and have It on some phones..
@geoken, yes that Is the point, and Zune Is just on US and Canada.
Yo Dawg! Herd you like ipods so we put an ipod inside the ipod so you can ipod while you ipod.
It's always been my thinking that it's the media content people holding the Zune back from coming to the UK and the rest of the world.
It's always been my thinking that it's the media content people holding the Zune back from coming to the UK and the rest of the world.
The same for the European Xbox marketplace. It's a bloody joke, we get maybe 5% of the content the US marketplace does.
And maybe bigger flash versions, 32GB flash? With the bigger screen but thinner and lighter.
It should be interesting either way, but I think MS should also update faster, they've been kinda slow really.
Except for the part where the Xbox didn't lose money, just made less profit vs gross revenue than expected.
Do you own a Zune for porn reasons? Either way...you sure seem to know your porn distribution formats.
I think he was referring to the fact that until only recently, the xbox platform was a neet loser for MS financially.
You can't llok at just hardware with MS products ... MS is not a hardware company, they are a software company.
And yeah, most porn sites use WMV. Pirated movies use DIVX or XVID. Internet and porn go hand in hand.
Now if it's still in the overall red due to the initial R&D costs, that's a different story. But no one here knows how much MS's initial investment was since, as far as I can remember, they never said exactly.
But it's also true with game systems that you lose on the hardware for the first X years and then start making money. Though most of it comes from software sales, accessories and in MS's case, Live.
If they're still behind or not, only MS knows, but since they have cut the price a few times already on the hardware, i'd venter to say that they're pretty close to, if not already have, made most of that initial R&D cost pack.
And this is why competent companies don't rely on bloggers who have no job other than volunteered whining and moaning on the Internet, to make business decisions for them.
Microsoft knows what they are doing.
And this is why competent companies don't rely on bloggers who have no job other than volunteered whining and moaning on the Internet, to make business decisions for them.
Microsoft knows what they are doing.
QFT, this is why a lot of bugs in the beta sector at Microsoft go without getting fixed. If people would give them percise feedback, and not "Windows 7 sucks because a, b, c, d." or "Zune sucks because it has a small screen." their feedback would be taken into consideration.
Also I HATE the zune software. I had such a hard time creating an account. My first one wouldn't let me log in again until I agreed to the new TOS but it would not take me to that page. I manually got there but it wouldn't save my choice. So I had to create another account and do it again. And the software is poorly organized and didn't work as well with my podcasts as itunes does.
I covered all those a few days ago.
Not much more to be said about this topic. Time to wait and see what Microsoft has in the works.
It makes no sense.
Try the software, you might be surprised and more inclined to go for the HW.
Start selling this in Japan and you'll have at least one guaranteed sale: me.
Don't make me give up waiting and go to the dark side and get a touch instead.
Yes the Zune 30/80/120 is brick-like.. but that's only beacuse it's hard-drive based.
All of the flash-based Zunes are pretty thin, and the interface is so much more nicer than the iPod's.
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