Sunday, January 25, 2009

Bye Bye Zune.


Microsoft To Exit the Zune Business?

According to Microsoft's quarterly filings to the Securities and Exchange Commission, the Zune platform experienced a revenue drop of 54 percent, or $100 million. This compares to relatively healthy sales of the iPod, which were up 3 percent in the same period (though revenue did drop by 16 percent). Obviously, with the recent job cuts at Microsoft's Entertainment and Devices Division, pundits are wondering how soon until the Zune also gets the chop. As one pundit wrote: 'Microsoft, by now, should be realizing that it's never going to be as "cool" as Apple, so why waste its time with the Zune where it has no competitive advantage?'"

2 comments:

coffee said...

I know what Microsoft should do to improve their Zune sales: get someone besides the big, hairy guy with a Zune tattoo to be their marketing front man/woman

John Sokol said...

you know it's going to take a whole lot more then better marketing.
Jobs was brilliant by making a whole ecosystem of products, the player, phone, PC's and iTunes and other sites, that all support each other, and driver each others sales.

Imagine if you wanted to by a car, but one dealer could only sell you the body, another the engine, (but it may not fit) and another the wheels (again must make sure you get the right ones) Almost like a kit but without any documentation. Yea, people discuss how to in the blogs if you can dig deep enough.

Then comes one company that can sell you the whole thing nicely packaged with all the features, but slightly more expensive. Which would you buy?

Sure the kit version is cheaper, but most people just don't have the energy to try to figure it out.

Where the iPod is so simple an idiot can just pick it up and go.