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Wal-Mart Leaks Zune Price

nieske writes, "Engadget reports that Wal-Mart accidentally published online the intended price of the Microsoft Zune; the iPod rival would apparently retail for $284. The price was quickly pulled from the Wal-Mart site. Reports say that Microsoft was flustered when Apple dropped the price for the iPod 30 GB, previously $299, to $249. BetaNews states that 'undercutting the iPod is a major goal of Microsoft's upcoming effort.' Will Microsoft respond to Apple with another price drop?"

35 of 313 comments (clear)

  1. Will MS respond? Yes. by RootWind · · Score: 5, Informative
  2. Not true by rbarreira · · Score: 4, Informative
    David Caulton, who works on the Zune at Microsoft, has already said (more than once) in his blog:

    A commenter mentioned that they'd "read" that Zune would cost more than the 30GB iPod. I can only say: Don't believe everything you read. I can't specifically talk about price, but I can say that Zune won't be undercut on price by iPod.

    And:

    I can't say more than what I've said, but the statements "The iPod 30GB costs $249" and "Zune won't be undercut on price" are pretty clear on that point ;)
    --

    The AACS key is NOT 0xF606EEFD628B1CA427BEA93A9CA9773F
    1. Re:Not true by truthsearch · · Score: 5, Informative

      The problem for MS is they can't stand to lose too much on the sale of each Zune. While sellling the xbox at a loss they recover (somewhat) in the sale of games. They don't have a profitable music service which will compensate for losses on the Zune. Again they'll take a huge loss to get into a new market. But with the Zune they have no way to recover costs later unless they eventually raise the price.

    2. Re:Not true by YU+Nicks+NE+Way · · Score: 3, Interesting

      Two words: X Box. Four more words: Two billions dollars lost. Including game sales.

      Microsoft can bleed money, and not even notice it. More than that, the COGs of the Zune will fall, and, unlike the XBox, but like the XBox 360, Microsoft will be able to recoup those losses later on. MS is many things, but unwilling to learn from its mistakes is not one of those things.

    3. Re:Not true by tb3 · · Score: 4, Insightful

      No, because Apple didn't have any online music sales before they launched the iPod. Then they did iTMS, and it worked.

      Microsoft, on the other hand, has tried numerous times to sell music online, and failed each time. That's their track record. What part of that is so hard to grasp?

      --

      www.lucernesys.comHorizon: Calendar-based personal finance

    4. Re:Not true by Volante3192 · · Score: 4, Funny

      How will Microsoft recoup losses to the Zune later on?

      They'll mark up the next Office by $100. Problem solved.

    5. Re:Not true by Anonymous Coward · · Score: 3, Insightful

      Wait a minute, people have been posting a theory on /. for years that Apple has NEVER made money from iTMS since it opened for business.

      Running with that in mind, my thought was that for Apple to continue to operate like that, they would have to keep selling iPods at a higher % above cost over and over again to make up the difference or increase the cost of songs (which may cause a negative effect on sales and profit). Well, now enter competition and Apple recently released some minor changes to existing models and lowered the price. Now they are making even less % profit then before. If the MS player does get a foothold, how will Apple maintain what they have just off of hardware alone when they are competting with others selling hardware?

      My opinion here...
      People claim that the slick interface and ease of use is why people by the iPod. I disagree that is the case for the the majority of people with them. How many of those people have actually even used another player to determine ease of use or slickness? How many other players were in your face with marketting that the average person knew about? How many people can even name a company or a specific model of portable music player besides the iPod series? These things lead to the assumption that the slickness was NOT the main factor and it was marketting, hype, and NOT wanting to be different (everyone has one, dont be left out) caused the huge sales coupled with the fact that portable compressed music players are new to everyone. Apple was not selling home DVD players and those sales took off in a major way when the price was right. The technology was new and it sold, not a matter of a specific company released their version and then the sales took off. It is not like Apple invented a new wheel and everyone flocked to it and gave up their existing wheels.
      If Apple can not maintain the hype to keep its edge. Others will pass it by as portable players will be a cheap commodity in a short period of time just like any other piece of personal technology ever released since the first transistor was created in the lab. Of course with the articfical licensing and restrictions, it will take a little longer but it will get there. MS and Apple will both ride it as long as they can.

      I do not care for the Zune or the iPod and view them both as evil because of the DRM involved and I still have a reasonable method to avoid it.

  3. A good use for the Zune by Secrity · · Score: 5, Interesting

    It seems that the Zune has a use after all, as a method to get Apple to reduce it's prices on the iPod.

    1. Re:A good use for the Zune by Keebler71 · · Score: 3, Insightful
      Microsoft may be using their position to deliberately push Apple into a crisis.

      What position would that be? They hold precisely zero percent of the mp3 player market share. Unless you are implying they are going to use their marketshare in OS to bolster their product - which is a pretty specious arguement if you ask me given that iTunes/iPods work great with windows. Now, if MS starts messing with things that give iTunes/Windows integration issues -then you have a pretty solid case. Of course that raises an interesting point... how well does Apple support Play's For Sure devices on its platforms? I'd wager less well than MS supports Apple products...

      --
      "It takes considerable knowledge just to realize the extent of your own ignorance." - Thomas Sowell
    2. Re:A good use for the Zune by eclectic4 · · Score: 4, Insightful

      "We know the stories about Apple (ab)using cheap labour to maintain the iPod's profitability at the moment"

      Trolly troll. *sigh* I'll feed you...

      Microsoft will also be (ab)using cheap labour to maintain profitability, it's how business is done. The shirt you are wearing, the computer you are typing on, etc... were all made using cheap foriegn labour. Apple voluntarily investigated the accusations, hired a third party to oversee, and has since been shown to be largely false. If Apple "abuses" anything, it's cornering the market on components

      "Microsoft may be using their position to deliberately push Apple into a crisis."

      Actually, it seems Apple dropping their prices has actually pushed Microsoft into a "crisis". Apple holds 75% of the digital music playing market, and it accounts for about 40% of their profits (all other coming from Mac and software sales). I'm not sure you know what you are talking about.

      --

      "The greatest obstacle to discovery is not ignorance - it is the illusion of knowledge." - Daniel Boorstin
    3. Re:A good use for the Zune by Knetzar · · Score: 3, Insightful

      Apple makes FairPlay work on on Windows.

      I'm sure MS is free to make Play's For Sure work on OSX

  4. Zune? WTF?!? by XxtraLarGe · · Score: 3, Funny

    Microsoft isn't going to do squat with the "Zune" for one reason alone. The thing is called "Zune". What does that mean to anybody? Must have been some real genius that came up with that one. I wonder if the package is going to look anything like this?

    --
    Taking guns away from the 99% gives the 1% 100% of the power.
    1. Re:Zune? WTF?!? by T.E.D. · · Score: 4, Funny
      The thing is called "Zune". What does that mean to anybody?

      Its something to listen to while drinking a Zima?
    2. Re:Zune? WTF?!? by chrismcdirty · · Score: 5, Funny

      Likely, it will only go the way of this lame mp3 player.

      --
      It's like sex, except I'm having it!
    3. Re:Zune? WTF?!? by Ubergrendle · · Score: 4, Funny

      Because "iPod" is a perfectly intuitive brandname? Even 'walkman' doesn't make much sense, although I guess you can walk and you are a membmer of mankind when listening to music.

      --
      John Maynard Keynes: "When the facts change, I change my mind. What do you do?"
  5. Re:Will MS respond? Yes. by rbarreira · · Score: 5, Funny

    That would be great, but I wouldn't trust a sentence starting with "One of our moles on the inside told us...".

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    The AACS key is NOT 0xF606EEFD628B1CA427BEA93A9CA9773F
  6. It's doomed by clickclickdrone · · Score: 4, Insightful

    Let's be honest here.
    Ipod is synonamous with MP3 player now. Even grannies going to the shops for their grandchildren will ask for an iPod by name. We say podcast, podcasting. I can't see people Zunecasting. Unless the Zune offers something substantially better or a great and highly compelling new feature (Actually, I've just thought of one, maybe I should copyright it right now..) no-one else has thought of then it's just not going to sell. The only hope MS have is to back it up with an extremely cheap song purchase system but I can't see them doing that without oodles of DRM involved.

    --
    I want a list of atrocities done in your name - Recoil
    1. Re:It's doomed by _xeno_ · · Score: 4, Insightful

      One major killer feature of the iPod are iPod accessories. If Microsoft wants to compete with the iPod, they'll need to be completely compatible with it.

      I have an iPod adapter for my car radio. I hook my iPod up to it and can play directly through the radio. This isn't one of those little "FM radio car adapters" either. It puts the iPod into "control mode" or whatever they call it, and can change playlists and move through the playlist directly though the radio.

      This is good, because the radio is designed to be easy to control from the driver's seat without looking at it. The most used buttons (skip song, volume) are shaped to be easy to tell by touch and are positioned to be within easy reach.

      As far as I know, there is no adapter kit for my radio for any other MP3 player on the market. Only one for the iPod.

      If Microsoft wants to compete with the iPod, the Zune needs to be able to support the accessory market. The iPod may not be the greatest MP3 player ever created, but it has the accessory market, and that provides a lot of value that Microsoft will be missing.

      --
      You are in a maze of twisty little relative jumps, all alike.
  7. Sexy sells by Rik+Sweeney · · Score: 5, Funny

    Once again on the price, you need to make a product sexy to sell it. The dancing silhouette with the white headphones sold the iPod because it looked good.

    So Microsoft, I propose you do this:

    A dancing Ballmer silhouette.

    My pulse is rising already just thinking about it.

    1. Re:Sexy sells by sys49152 · · Score: 3, Funny

      So Microsoft, I propose you do this: A dancing Ballmer silhouette.

      Ask and you shall receive: http://www.macboy.com/cartoons/ballmer/

  8. Re:Will MS respond? Yes. by gEvil+(beta) · · Score: 5, Funny

    Hey, if anybody's gonna have some good insight into the underworld, it'd be a mole...

    --
    This guy's the limit!
  9. Re:Ease of use vs price? by Lumpy · · Score: 4, Insightful

    And can you imagine the DRM nightmare that is going to be on that MSFT device? I have clients all the time needing help moving music they ripped on mediaplayer to a new machine. they will not play because they did not set the "dont encumber my music with drm dammit" flag in the advanced settings hidden in mediaplayer. so I haveto explain to them what DRM is and they still do not understand.

    The other biggest failure of the Microsoft device will be that I dont care what service they couple with, iTunes has way more music selection on it that anything Microsoft can come up with.

    I dont love the iPod, I'm a non drm kind of guy with my iRivers... but microsoft is not known for open and easy to use.

    --
    Do not look at laser with remaining good eye.
  10. Re:Will MS respond? Yes. by neoform · · Score: 5, Interesting

    So, the question is, will MS do with zune as they did with the xbox and sell it at a loss just so they can overtake apple.. ?

    also, why is a zune price leak in the apple section?

    --
    MABASPLOOM!
  11. Re:My predictions were right,,, by Speare · · Score: 3, Insightful
    iPod is "the" MP3 player to the masses and the only thing that will convince them otherwise is price.
    Yeah, because that really makes the Keds Title Bout(tm) sneakers a household name and is a license to print money, while the Nike Air Jordan(tm) line languishes in obscurity and financial ruin.
    --
    [ .sig file not found ]
  12. Re:Who pays standard retail prices for electronics by MightyYar · · Score: 3, Funny

    I agree, wait a few months and Zunes will be on Overstock.com in the "iPod Killer" category :)

    --
    W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
  13. Re:Will MS respond? Yes. by tb3 · · Score: 4, Interesting

    Is this dumping?

    I'm serious. With their huge cash reserves, Microsoft could enter the market in toilet seats tomorrow, price them at 99 cents, drive everyone else out of business, and drive up the price to $10,000 a seat.

    We've already seen them put Netscape out of business by giving away the browser, so can Apple (or any other manufacturer) cry 'foul' and accuse Microsoft of dumping? What are the laws in this situation?

    --

    www.lucernesys.comHorizon: Calendar-based personal finance

  14. Re:Will MS respond? Yes. by rbarreira · · Score: 5, Insightful

    Are freeware writers also dumpers? Do they start being dumpers if they later start charging for their software? Mmmmm...

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    The AACS key is NOT 0xF606EEFD628B1CA427BEA93A9CA9773F
  15. Re:My predictions were right,,, by MightyYar · · Score: 4, Interesting

    They have to be careful. If it is cheaper than the iPod, that could add to it's image of being a knockoff. It's like wine. People look at all of the bottles on the shelf and don't have any idea what the difference is, but their pretty sure that the $40 bottle is better than the $6 bottle, even though that isn't really true at all. Put yourself at best buy. The 30GB iPod (which you've heard of and seen before) is $249 and this Zune thing is $229. You quickly scan the specs, see that they are about the same, and figure that this Zune thing must just be a cheap knockoff. On the other hand, if it were $259, you might ask a salesperson what the difference is.

    All of this is moot anyway - they went after the wrong market, IMO. The most popular iPod is the tiny little Nano. Unless they were trying to create a niche product, I'm not sure why they didn't go after the biggest market.

    Who runs MS, anyway? Who thought it was a great idea to compete with their licensees? And then against Apple's iPod, where all others have failed? If I was a shareholder I'd be furious. If I were a licensee I'd be furious. If iPod sales ever go flat (don't they have to at some point?), Apple might get a nice reception to an offer to license FairPlay now... a real "plays for sure".

    --
    W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
  16. Yes, but my point is... by kaleco · · Score: 3, Interesting

    Both companies will be making similar products at similar cost (using cheap labour etc). Apple has to maintain profitability on the iPod since it's a core Apple product, whereas Microsoft can afford to sell at cost or maybe a small loss in order to put strain on Apple. I would have thought this was illegal, but since it's standard practice in the console industry I'm not so sure. I think Apple is reorganising its iPod product, though. The Nano is being repositioned as the bread-and-butter line with the iPod being sold as a sort of 'premium' product. The Zune will come off second best to the Nano since most people don't want to socialise with their technology (mobile phones aside :P). An MP3 player is something you use when you are going somewhere, at the gym, bored or whatever, and not something you want to play around with infront of your friends swapping DRM'ed files and watching video. The raison d'etre for a digital audio player is... music, and by all accounts the Nano does this well. It's difficult to add value beyond that. In short, the Zune has arrived just as the HDD iPod has left the stage.

    --
    Prosperity is only an instrument to be used, not a deity to be worshipped. Calvin Coolidge
  17. Zune is a loss leader by snowwrestler · · Score: 4, Insightful

    The product it is leading is Vista.

    In the 1990's Microsoft spent thousands of man-hours creating a pen operating system that died on the vine. It was a pure cost to the company, no profit. But the key point is that it died AFTER the GO Penpoint operating system died. Martin Eller, one of the Microsoft staff involved, even has a quote in his book:

    "This wasn't a thing about making money. This was all about 'block that kick.""

    Apple makes money selling iPods, but the big play for them is the iPod halo effect to sell more Macs. Macs (and Mac software) are much more profitable than an iPod. The release of Vista, with all its associated angst, represents a big opportunity for Apple. Microsoft will fight that halo effect with everything they've got, even if they have to lost money on every single Zune. They make their money from Windows, and this is all about protecting the Microsoft market (and mind) share.

    --
    Build a man a fire, he's warm for one night. Set him on fire, and he's warm for the rest of his life.
  18. Re:Will MS respond? Yes. by rackhamh · · Score: 4, Funny

    Is this dumping?

    I'm serious. With their huge cash reserves, Microsoft could enter the market in toilet seats tomorrow, price them at 99 cents, drive everyone else out of business, and drive up the price to $10,000 a seat.

    We've already seen them put Netscape out of business by giving away the browser, so can Apple (or any other manufacturer) cry 'foul' and accuse Microsoft of dumping? What are the laws in this situation?


    Yes, and we all know how Microsoft ran up the price of Internet Explorer once Netscape was out of the picture...

  19. Re:Will MS respond? Yes. by ookaze · · Score: 4, Interesting

    Yes, and we all know how Microsoft ran up the price of Internet Explorer once Netscape was out of the picture...

    Yes we know, and for those skeptical people out there, here it is : they ran up the price by not paying anymore people on improving Internet Explorer. Which means that before, the price of Windows included the cost of the dev team on IE. After Netscape was out of the picture, the price of Windows didn't include that cost anymore, but was still the same.

  20. Re:iPod vs Zune = Netscape vs IE by garylian · · Score: 3, Insightful

    I think you are failing to take into consideration the fact that this is a whole different set of circumstances.

    Netscape lost the battle over IE due to one primary reason: IE was pre-bundled with Windows.

    Now, you may scoff at that, but think about it.

    A person new to PCs and the internet goes to the local Wal-Mart/BestBuy or whatever, and buys a computer. They come home, get it set up (or more likely, get help from a friend/relative) and try to get to the internet. And what pops up? Various MS assistants that lead them directly to Outleak, IE, and WMP. Case closed. If that person wanted Netscape, they had to download it from somewhere, or get a copy on a CD from their ISP. And even though MOST ISPs sent a copy of Netscape to the customers in the late 90's, the damage was already done. Customers were now familiar with IE and Outleak, and had no reason to switch.

    The difference today is that both Zune and iPods are a computer attachment. And the purchaser of said MP3 players won't be looking at a PC for the very first time 99% of time. Nor will it be their first time on the internet.

    Apple is flat out DOMINATING the portable MP3 player market. I am sure they are working HARD to keep their trademark alive, so the iPod doesn't become the Xerox machine , or the next aspirin. Because iPods are now synonomous to the world with MP3 player.

    I just don't see MS getting the Zune to that point.

  21. Re:Will MS respond? Yes. by Garabito · · Score: 4, Funny
    I'm serious. With their huge cash reserves, Microsoft could enter the market in toilet seats tomorrow, price them at 99 cents, drive everyone else out of business, and drive up the price to $10,000 a seat.

    It would give a new meaning to "per-seat license"

  22. Re:Will MS respond? Yes. by operagost · · Score: 4, Funny

    I'll wipe with the End-user Latrine Agreement (EULA).

    --

    Gamingmuseum.com: Give your 3D accelerator a rest.