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Microsoft To Exit the Zune Business?

thefickler writes "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?'"

83 of 361 comments (clear)

  1. What really runined it was... by Joce640k · · Score: 5, Funny

    Steve Ballmer saying "squirt".

    Heckuva marketing slogan, that one.

    --
    No sig today...
    1. Re:What really runined it was... by davester666 · · Score: 2, Interesting

      Considering the brand new music "service" they are just rolling out, it's no wonder their music-related project's are dying.

      http://arstechnica.com/news.ars/post/20090123-microsoft-misses-memo-launches-drm-laden-mobile-music-store.html

      If the MS manager did actually have those responses (which seem to be, we came up with this idea ourselves, years ago, but we finally could launch it now, we'll fix it later, and no, we haven't done any consumer studies after the initial one we did 4 years ago when the project began), I would have to believe his name went on the MS layoff list...

      --
      Sleep your way to a whiter smile...date a dentist!
  2. wheres by ionix5891 · · Score: 4, Funny

    the "suddenoutbeakofcommonsense" tag

    1. Re:wheres by buchner.johannes · · Score: 5, Funny

      everyone misspelled it

      --
      NB: The message above might reflect my opinion right now, but not necessarily tomorrow or next year.
    2. Re:wheres by Anonymous Coward · · Score: 2, Insightful

      I'm more surprised that 'andnothingofvaluewaslost' is missing.

    3. Re:wheres by CoolGuySteve · · Score: 2, Funny

      Well thank god the story tag is still there. Otherwise how would I ever know?!

  3. Re:Just because by BeerCat · · Score: 2

    So there is a marked for a not dumbed doen uncool things. Sure, they are not as profitable, but it's all about the choice.

    Except that the Zune, by all accounts, was uncool and dumbed down

    --
    "She's furniture with a pulse"
  4. this comes as no surprise... by owlnation · · Score: 4, Insightful

    It's fairly easy to see why the Zune failed.

    1. A mammoth uphill struggle to beat the popular and well-established iPod (as well as many other competitors)

    2. The use of DRM.

    3. The use of the word "squirt." Which is easily associated with bodily functions.

    4. It came in brown. Which made "squirt" all the more obnoxious.

    5. The lock-up issue.

    No-one will miss it...

    1. Re:this comes as no surprise... by anss123 · · Score: 2, Insightful

      It's fairly easy to see why the Zune failed.

      I can't even see the Zune succeeding if all iPods suddenly combusted. It was a bad product from day 1.

    2. Re:this comes as no surprise... by JohnFluxx · · Score: 5, Insightful

      I don't know if it was a factor, but it is deliciously funny, that Microsoft's Zune did not play Microsoft's PlayForSure format. :-)

    3. Re:this comes as no surprise... by rolfwind · · Score: 4, Insightful

      Except for #1, I don't think many of those issues really hit the average consumer except when it was too late - when they already bought it.

      In my life, I probably used an iPod for less than 20 minutes and a Zune for less than 15. I like looking at the newer models my friends carry from time to time, and recently had a friend's newer Zune in my hands. It's okay, much better than the sloppy buttons of the 1st gen. What strikes me about the interface - the pad where you can scroll up or down with your thumb - is that it still isn't as easy as the clickwheel on an iPod. It may sound irrelevant, but since this is the one and only way to communicate with the device it does become a big deal.

      Otherwise, it's just another Me too! device and with the prices pretty much in the same range as an iPod, there is little incentive to go out and buy one. With an iPod, you at least have iTunes and the like.

    4. Re:this comes as no surprise... by BeerCat · · Score: 4, Insightful

      How about:

      6: Not available outside North America (presumably because getting the rights for the marketplace agreed was too hard), which then planted the meme that it could only take purchased tracks, rather than "rip your own CD".

      7: Marketplace tracks were priced in "points" rather than real money, which meant that the customer needed to pre-load the points ("What, I need to pay for my music in advance! Why can't I just pay when I want it?").

      Now, while both of those are incorrect (it could take MP3, and the loading of points could be done at purchase), it gave out the wrong perceptions. And in this game, perception is all.

      --
      "She's furniture with a pulse"
    5. Re:this comes as no surprise... by UnknowingFool · · Score: 5, Interesting

      For the most part the Zune had to do in a few years what Apple did over five. When the Zune was released in 2006, Apple had over five years of experience designing and tweaking the iPod. It also had over three years with iTunes. The whole ecosystem of the iPod also had to be replicated. That was/is no small task. Also the history of Microsoft suggests that they take a few iterations to get things usable.

      The first Zune wasn't bad. The problem was it wasn't great. To beat the iPod, it had to be substantially better. It only offered a few features that the iPod didn't (bigger screen, Wi-fi, radio, sharing) but also drawbacks. Shared music is extremrely restricted. Zune can't be used as HD. The more desired advantages were trumped by Apple with the iPod touch which features a new multi-touch interface that the Zune still doesn't have.

      One of the main reasons the Zune didn't do as well was marketing. MS just didn't get it that their other products sold well because people didn't have a choice. To convince people to buy your product over another requires good marketing. So they went with "We're the underdog; let's market our product that way and we'll seem cool. Let's make our commercials oblique and obscure." To their dismay, people have never considered MS the underdog or cool. Their commercials never presented the viewer with a clear picture of what they were advertising.

      Contrast this with the iPhone commercials. In the smartphone market, the iPhone was/is new. They had to get people to buy it over Windows CE and Blackberrys and non-smart phones. There were four original iPhone commercials. Each of them showed that (1) it's a phone, (2) some other function (Google maps, browser, plays media, etc), (3) how it works using the new touch interface, (4) who makes it (Apple), (5) where to get it (Apple or AT&T). Each iPhone commercial fulfilled the role of advertising whereas the Zune commercials left the viewer puzzled as to what the message was.

      In these hard economic times, it doesn't help that the division that Zune is in a division has not been very profitable historically. In the last few quarters has the division been in the black. With the MSN and Xbox (and now the Zune), the division has been $7 billion in losses since the Xbox was started. That can't bode well if MS is so worried about the future that they've laid people off for the first time. The Xbox 360 has many more customers and is more popular than the Zune albeit it probably costs more. Most likely the Zune will have to be cut.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    6. Re:this comes as no surprise... by Anonymous Coward · · Score: 2, Informative

      It was a bad product -at- day one, but it's gotten far better since. It has some very impressive features which I haven't seen in any other MP3 player at that price range, and upgrading older versions to support all the features of the newer ones is something I wish more companies would allow. If they'd just open the fucker up and lose the DRM...

    7. Re:this comes as no surprise... by anss123 · · Score: 4, Insightful

      It was a bad product -at- day one, but it's gotten far better since. It has some very impressive features which I haven't seen in any other MP3 player at that price range, and upgrading older versions to support all the features of the newer ones is something I wish more companies would allow. If they'd just open the fucker up and lose the DRM...

      The way I think DRM should work is like this: If you try to play a file which you don't have the 'key' for the media player will still play it, only also informing the user that it's playing an unlicensed song somehow. Thus make DRM a tool to help the user stay legit, instead of a punishment for those who are legit but can't playback the file the way they want to.

      That way it's the user, and not a potentially faulty algorithm, that have the final say whenever they can play back the music or not.

    8. Re:this comes as no surprise... by Anonymous Coward · · Score: 3, Interesting

      I must be the only one here that has owned and used a Zune. I won the Zune in a drawing at a MS Luncheon for Server 2008.

      I must say, I put away my iPod Nano, and am now using the 8gb Zune.

      The audio quality is a bit better, missing the EQ though. The FM receiver does work quite well in the metro area.

      The one thing I was surprised about liking is the user interface and the touch sensitive pad for controlling it. I can still load MP3's without DRM, and use it to my hearts content.

      Still not sure if I would have bought one on my own, but after owning/using it, I would not rule it out now.

      Just my .02, and no, I am not a MS fanboy. I use a MacBook Pro, running both native apps, and a Windows VM.

      -Ryan

    9. Re:this comes as no surprise... by scotts13 · · Score: 5, Insightful

      It may in reality be the largest factor. After the PlaysForSure fiasco, who in their right mind would ever buy ANYTHING with DRM from Microsoft, ever again?

    10. Re:this comes as no surprise... by aurispector · · Score: 4, Interesting

      You raise two interesting questions. a) What constitutes the perfect pmp (or to put it another way, the most desirable pmp) and b) will they become irrelevant as more phones morph into music players? The whole drm thing is a side issue. I can't think of any player that won't play drm-free mp3's - even the zune. The pmp manufacturers don't give a crap about drm but have to include it if they want to have a music downloading service because the record/movie companies demand it.

      It looks to me like pmp market of the future will become be divided into expensive high end enthusiast devices and ultra cheap low end mass market devices, with the much larger middle ground being taken up by combination phone/pmp devices. Everyone carries a phone and it doesn't make sense for people to have two boxes to tote around just to listen to music or look at video. Regardless, most players work pretty much the same - they play music and video. How they do it is irrelevant as long as it's simple and makes sense to the end user.

      What we end up talking about is really the music management software and associated music sales/downloading services. Ipods/phones/tunes already have a massive lead in this area in terms of seamless integration and a one-stop shop. Apple created the market and do a good job of making sure they remain the best. It's hard to imagine any company being able to outpace Apple on both hardware and software/services such that people see a clear advantage. How could Microsoft really hope to blow away Apple on both hardware and software/music services? Apple is more than good enough to make it impossible. Hence the market stays fragmented and Apple centric.

      --
      I have mod points. The reign of terror begins now.
    11. Re:this comes as no surprise... by S.O.B. · · Score: 2, Funny

      That's a reasonable and well thought out approach to the issue of DRM.

      Hold on...reasonable and well thought out? What are you doing on Slashdot?

      --
      Some of what I say is fact, some is conjecture, the rest I'm just blowing out my ass...you guess.
    12. Re:this comes as no surprise... by His+Shadow · · Score: 4, Insightful
      Simply, I think, because they aren't used to thinking of Apple as "evil."

      Simply Wrong.

      Apple's DRM is a non-issue because once it is setup it is utterly transparent to the user. One account. 5 computers. Unlimited number of ipods connected to those computers. Burn tracks to a CD (10 times in the same playlist)and rip them on another machine and the DRM is gone. And now, the DRM is gone altogether!

      The information is everywhere. Why is it so damn hard for people to read and understand why Apple's DRM isn't an issue? The facts speak for themselves.

      --

      Fiat Homos et Pereat Theos

    13. Re:this comes as no surprise... by TerranFury · · Score: 4, Interesting

      I have neither a Zune nor an iPod. So I might not know what I'm talking about. But on the other hand, I don't think I have any entrenched bias. And I've done a little googling. So take this reply in that context.

      My understanding is that most of the restrictive Zune DRM has to do with the WiFi "squirt" feature. (Obviously this crippled what could have been the Zune's killer feature.) But iPods have no wifi at all; it seems silly to argue that iTunes DRM is less restrictive because it does not prevent you from doing things you couldn't do anyway.

      As for moving music around, in some ways the Zune seems better. Music goes onto the iPod and never flows in the other direction. By contrast, you can move non-DRMed files from the Zune back onto your hard drive.

      The burn-rip argument I dislike because (1) it degrades quality and (2) consumes media. More, it's nearly* just an application of the Analog Hole (I say "nearly" because CDs are digital. But you're still transcoding between lossy formats, which degrades quality), which of course exists for any device -- Zune, iPod, or some hypothetical completely-and-utterly locked-down player. But that said, it seems that you can burn CDs from WMAs from Microsoft's store too (Caveat: An option exists in WMA files to prevent users from burning them to CD. But it appears not to be in use anywhere.)

      So I'm not seeing a clear win for Apple in DRM here.

      But I think the most fundamental argument is: It sounds like you're saying Apple has "good DRM." Can such a thing exist?

    14. Re:this comes as no surprise... by Teese · · Score: 5, Insightful

      Microsoft uses the point system so you can pay for things over multiple platforms xbox, zune etc.

      You know, Cash works for that too.

      --
      "I'm a Genius!"*


      *Not an actual Genius
    15. Re:this comes as no surprise... by Knuckles · · Score: 3, Insightful

      The pmp manufacturers don't give a crap about drm but have to include it if they want to have a music downloading service because the record/movie companies demand it.

      As recent iTunes and Amazon store news show they really don't, or are not in a position to. Microsoft failed at defining their customers: they collaborated with the content industry against the people who were supposed to buy the Zune. Apple got it right, whether that will be good or bad in the long run.

      --
      "When I first heard Daydream Nation it quite frankly scared the living shit out of me." -- Matthew Stearns
    16. Re:this comes as no surprise... by Chris+Tucker · · Score: 2, Informative

      "So I'm not seeing a clear win for Apple in DRM here.

      But I think the most fundamental argument is: It sounds like you're saying Apple has "good DRM." Can such a thing exist?"

      Apple DRM does not impact the average user in any way. They don't see it. It doesn't get in the way of the average user enjoying their music and video purchased from iTunes.

      They have one computer and one iPod.
      The one talks to the other.

      MAYBE they also synch to the computer at work.

      MP3 files and converted to MP4 video plays just fine on the iPod.

      The iPod itself and the iPod software on the computer do not forbid you from playing non-DRMed files, nor prevent you from transferring files to the the iPod.

      iTunes Store. "Oh, I want that song!" Two mouse clicks later, it's on the computer. Next time the iPod is docked, it automatically copies to the iPod. The DRM did not get in the way in any form.

      If you download from the iTunes Store in Apple Lossless and then burn a Music CD, there is no loss in quality. You can burn 10 CDs of the same playlist. Swap the order of two files and burn 10 more.

      As for backup of all your purchased music/video files. You DO use Time Machine, right?

      Remember, Slashdot geek:

      YOU are NOT the target audience for the iPod.
      YOU have NEVER BEEN the target audience for the iPod.
      YOU will NEVER BE the target audience for the iPod.

      --
      Guaranteed! This comment 100% Anthrax free!
    17. Re:this comes as no surprise... by Korin43 · · Score: 4, Insightful

      I doubt DRM was a big deal in this. My roommate has a Zune and the two biggest reasons he hates it are the Zune software (the only way to transfer music to your Zune), and the lock-up issue.

  5. It may be folded into the phone devices by howardd21 · · Score: 3, Interesting

    All of this (the article and our posts) are speculation, so as long as we are guessing/gossiping/conjecturing, etc.

    Microsoft has indicated that they would prefer less manufacturers and models of Windows mobile based phones, so they can make the OS more tightly integrated with the hardware. There have also been rumors that Zune functionality would be folded into the phone, which tends to make sense. So my guess would be they gracefully lose, er...bow out to the iPod and say they are "providing a great combination to their customers by putting the Zune features into the phone."

    --
    no comment
  6. Wrong approach... by rts008 · · Score: 5, Funny

    Just rename it the iZune, eZune, or better yet, the ieZune...slap a Vista Capable sticker on it and it can't help selling like hotcakes!

    *crickets chirping*
    Well, then again, maybe not.

    --
    Down With Slashdot BETA!!! I've been around the corner and seen the oliphant; you can only abuse me from your perspecti
    1. Re:Wrong approach... by PietjeJantje · · Score: 5, Insightful

      No, don't use the "Zune" bit at all, it is tainted. Just do some minor cosmetic adjustments, call it Player 7, and re-release the same thing.

    2. Re:Wrong approach... by 0100010001010011 · · Score: 2, Funny

      It's like they took the "Microsoft Designs the iPod Packaging" parody as an actual how to.

  7. No-one will miss it...? by Joce640k · · Score: 5, Funny

    Nobody except this guy:

    http://sydfish.files.wordpress.com/2008/04/zune-tattoo.jpg

    Oh, now I see why it failed...

    --
    No sig today...
  8. It's not just about "cool" by indytx · · Score: 4, Interesting

    It's more about making products people want to buy. How many people really want to buy Microsoft products anymore? When was the last time we heard about people lining up to buy the latest version of Windows? The problem for Microsoft is that it has a hard time making products that excite the vast majority of the public, and they've had a few huge mistakes in public perception lately. The Xbox 360 Red Ring of Death was a just a debacle. They shipped a Zune that was less feature-filled than the then current iteration iPod. Don't get me started on Vista, "Vista Capable," and "Vista Ready," or whatever those stupid stickers said.

    Sure, Apple products are cool, but they also work pretty well. Why Microsoft didn't look to Apple's or it's own playbook and more closely linked the Zune to the Windows environment is beyond me. This worked for years with Explorer.

    Seriously, Xbox games are "cool." I have an original Xbox, and I have been giving Microsoft my $$$ for several years now for my Xbox Live membership. However, I'm just too stingy to give my money to Microsoft for an Xbox 360 after all the hoopla about failure rates. The race to beat Sony to the market was a failure of vision and an appreciation of paradigm shift. There was a huge market for casual gaming that just wasn't going to be satisfied by the first-person shooter, and Nintendo was able to capture it. We can chalk that up to a happy accident for Nintendo executives, but so what?

    If a company tries to be all things to all people, it will be unable to do everything as well as companies that are smaller, more focused, or more nimble. Look at General Motors as example number one. Consumers have too much access to information and too many choices. The problem with Microsoft's executive leadership is that the strategic steps they take are, primarily, reactions to market forces. Then, they are placed in the position of having to respond. Why didn't anyone at Microsoft see that Netbooks might one day become popular and have a version of Vista which would run on them? No one? How long was Intel working on the Atom?

    Microsoft stocks are, historically, looking pretty affordable right now, but I'm going to wait. I just don't see any game changing ideas coming out of Redmond. Until, as a company, it starts doing something much better than the competition, it will never rise to its former glory days, and its market share and/or profits will continue to decline.

    --
    Make love, not reality television.
    1. Re:It's not just about "cool" by JamesRose · · Score: 5, Informative

      Really? Because the only phrase in that drivel you just wrote about the zune was wrong "They shipped a Zune that was less feature-filled than the then current iteration iPod." BS! Bigger screen, FM radio, and Wifi. The thing the ipod actually did have that the zune didn't was a shiny surface on the back. That's literallly it. The zune even had better quality audio. Buy music from FM radio? Geat idea.

  9. Microsoft UK launches Zune MusicTurd(tm) service by David+Gerard · · Score: 3, Funny

    In a bid to win back profits after huge layoffs worldwide, Microsoft UK has launched Zune MusicTurd(tm) for mobile phones.

    The highly competitive music store offers tracks at twice the price, DRM-locked to a chosen individual ear of the purchaser. If they can get it to work with their phone. Microsoft were careful to point out to the financial press that charging your account, however, works perfectly and that the helpline number has been connected to a fax machine.

    Microsoft is confident the MusicTurd(tm) service will attract millions of people who will buy tracks from them to play on one mobile ever, not transferable to any other device including the same phone's replacement, in preference to stores offering cheaper unlocked MP3s, and won't just drive people to filesharing networks, MP3 blogs or copying 500 gigabyte USB disks full of music from their friends in sheer disgust at these corporate tools.

    "We understand that lots of people use telephones they carry around with them these days," said Hugh Griffiths, Microsoft UK head of Mobile, "and you can even play music on them. A bit like a transistor radio. Whatever will they think of next! So if we get the consumer interest, we'll offer an enhanced version, MusicTurd(tm) Polished(tm). Like we're doing with Windows 7. You can't expect it to be any good until the third version, of course. So buy the first two and it'll be fantastic. Trust us on this. We have hundreds of loyal suck, er, customers on the MSN website, I'm sure we can squeeze them until the pips rattle.

    "What do you mean, I'm lacking enthusiasm for our product? You'd think I was trying to get redundancy in the next round of layoffs or something. Ha! Ha! What a ridiculous notion."

    [Read the original interview. Least enthusiastic marketer in history. It was quite hard to outdo.]

    [Oh, and have a Zune-Anus logo.]

    --
    http://rocknerd.co.uk
  10. Re:A Rockbox port would be awesome by David+Gerard · · Score: 3, Insightful

    This is a good example of Microsoft snatching defeat from the jaws of victory. The Zune had pretty good hardware at a reasonable price ... then they put (a) horrible firmware on it (b) THE WORST PC software imaginable for it (c) no way to put your own firmware on.

    If they'd made it possible to reflash, a zillion Linux weenies would have bought the devices just to put Rockbox on them.

    But no. Obsessive control is so much more important than actual, uh, sales. Remember, it worked for the music industry! Oh wait, it didn't.

    --
    http://rocknerd.co.uk
  11. So the revenue from iPods fell 3%... by MMC+Monster · · Score: 2, Interesting

    Why not compare revenue to revenue, or sales to sales?

    --
    Help! I'm a slashdot refugee.
    1. Re:So the revenue from iPods fell 3%... by UnknowingFool · · Score: 4, Informative

      iPod sales (22.7 million) went up 3%, revenue ($3.3 billion) was down 16% compared to last year. That would suggest more people were buying this year but were buying the cheaper models compared to last year.

      Zune on the other hand drop 54% in revenue ($100 million) due to drop in sales. There's no other breakdowns. Considering the whole division was profitable by only $151 million and the Xbox made up $135 million of that, the Zune doesn't generate much profit for MS whereas the iPod is substantial money maker for Apple.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
  12. Xbox Fiasco Next To Get Axed by Anonymous Coward · · Score: 2, Interesting

    The entire Entertainment and Devices Division is going to get a massive house cleaning.

    Zune hardware is the first step. It's the easiest to kill off. How much of stand alone portable music player market there will be in five years when so many people are starting to use their cellphones makes just throwing in the towel on the Zune hardware an obvious choice.

    Killing off the eight year long Xbox fiasco is next. Microsoft has been consistently killing off or letting go first party developers for the past couple of years. The first party developers are now done to only Rare, Lionhead, and Turn 10. Not the actions of company looking long term to still be in the console market. Other none developer Xbox staff at Microsoft got axed in the recent layoffs and there is supposed to be even more dramatic changes and cuts coming soon.

    So far the two Xbox products have racked up over 8 billion in losses over 8 years. Even with the poorly designed and manufactured Xbox 360 hardware Microsoft is still losing money three years into the consoles life. The Entertainment and Devices Division only barely made a tiny profit for 2008 due to absurd accounting games like having the profitable Microsoft Mac software unit placed in the Xbox's division to help hide the hardware losses.

    The days of Microsoft being willing to just keep throwing money at the Xbox fiasco are coming to an end. The remaining first party studios should be gone by this year going by the rate they've been closing down or letting go their other studios. The 2 to 3 billion minimum it would take to create another Xbox isn't going to happen. Instead Microsoft will just let the Xbox die out in the market over the next couple years and milk as much money as they can out of the suckers willing to keep paying 50 dollars a year for online gaming.

  13. Re:A Rockbox port would be awesome by Dogtanian · · Score: 4, Insightful

    (c) no way to put your own firmware on.

    The other points may be valid, but- much as I hate to say it- this is irrelevant for 99.9% of the mass market I assume MS were going for.

    If they'd made it possible to reflash, a zillion Linux weenies would have bought the devices just to put Rockbox on them.

    No, they probably wouldn't have because it's an MS product.

    And the hacker/modder/enthusiast market always overestimates its own importance anyway. Sorry to say this, but you're a relatively tiny percentage. Even if it had been massively successful in that small niche it would still have flopped relative to the mass market iPod.

    Nothing wrong with spotting a niche and successfully filling it, of course. However, if your motives- and marketing budget- aim for success with the great unwashed hordes, then niche success is still a flop.

    --
    "Slashdot - News and Chat Sites Deviant". (Click "homepage" link above for details).
  14. Re:Just because by ScreamingCactus · · Score: 2, Interesting

    I agree with you, I hate ipods too, mostly because I hate itunes, but I was never too crazy about the ipod itself, either. I had planned on getting a Sansa, but having a gift certificate at Wal-Mart, I had to choose between a Zune and an iPod. I really like my Zune, though. I've never had any problems with the player, although the software on my pc, since version 2, has been a major headache. I can't figure out what could possibly be uncool about the Zune, other than the fact that Microsoft makes it and it's brown (which is actually an "in" color right now, except for technology). I don't see how the term "dumbed-down" can really even apply to an mp3 player. How advanced can you expect it to be? I seriously, honestly think that 80-90% of the people dissing the Zune have never even used one, and are just jumping on the Hate-The-Zune wagon, which itself is simply riding on the bigger Hate-Microsoft wagon, which is more like a mobile city than a wagon. But having owned both the Zune and iPods, I would make the same choice again.
     
    And about the Zune having DRM (is what I heard), I don't really understand that because it comes with a built-in wireless system so you can share your music with any other nearby Zune. Which seems like the opposite of what DRM is trying to accomplish. I have yet to see an iPod that does that.

    --
    The path to enlightenment is truly through homemade drugs!
  15. Re:What? So Microsoft should give up? No way! by malkavian · · Score: 4, Insightful

    Windows got the market by price, not by opening up new frontiers.. They copied a lot of stuff from the Mac.. Just iimplemented it on a platform that became affordable to more users than the Apple hardware/software.

    Then their 'hammering away' wasn't actually technical; they employed marketing campaigns, misinformation, and even error messages in their products to scare people away from competition (c.f. the old messages in windows 3 when you ran it on a competing DOS)..

    MS doesn't (historically) play the 'competition' game.. It plays scorched earth tactics. Find a market it wants to play in.. Throw endless money at it, pushing products out for less than a commercial competitor in only that market can afford (c.f. IE vs Netscape, and other similar events in other markets). Wait until said competitor is dead, then lock it in, and perhaps charge more for the product afterwards, or let it stagnate and put no further development in, killing the development of a whole market.

    In the iPod battle, it's Apple, not Microsoft, which pushes to new areas (all the functionality of the iPod touch, the ease of use, so on, so forth).. MS had the almost killer app in there with their wireless sharing, but with its limitations, nobody would have been that enthused about it..

    So, MS did their usual "throw money at it, and see what sticks", Apple did design work, and targetted their resources and worked out what people would want to see..
    There's a point at which you decide to cut your losses and run. MS have been trounced solidly on all fronts on this one. Now that MS seem to actually have to worry about money (wonder how much they lost in the market crashes), seems this loss maker that isn't going anywhere soon would be a good cut, rather than other areas that actually make a profit.

    Wars are won (or at least not completely lost) by not fighting on too many fronts, especially ones where you're getting solidly thrashed by overwhelming opposition. Sometimes a ceasefire, or strategic withdrawl can save the whole show, rather than throwing everything you have in every direction.

  16. Doomed from the start by line-bundle · · Score: 4, Insightful

    It was doomed from the start and here is why. Most MS products do not stand on their own. They are either riding on someone's coattails initially or shoved down people's throats (e.g. DOS and office and explorer). This is usually through corporate sales which a bribeable. Zune had to stand on it's own but had no legs.

  17. Re:Had to remind myself what a Zune looked like. U by David+Gerard · · Score: 4, Funny

    I don't see what anyone could possibly think was wrong with the Zune logo.

    --
    http://rocknerd.co.uk
  18. Re:A Rockbox port would be awesome by jeremyp · · Score: 2, Insightful

    No product aimed at the zillion Linux weenies is ever going to be commercially successful. The reason is that there aren't a zillion Linux weenies. There probably aren't even 100,000 Linux weenies that would buy an MP3 player just so they could reflash it.

    --
    All I want is a secure system where it's easy to do anything I want. Is that too much to ask ~~ Randall Munroe
  19. Re:What? So Microsoft should give up? No way! by Alioth · · Score: 2, Insightful

    PCs for the most part aren't about fashion. PCs, for the most part, are for businesses and should be boring and un-distracting (and part of the problem with Vista is they forgot this, and blinged it out at the expense of hardware).

    As well as administering Linux and BSD systems, I also admin a couple of Win2K3 servers. I sort of like Win2K3, because it's crushingly boring and just gets the job done. Once I've set up the scripting environment how I like it, I hardly notice it's there. That's how a business OS should be. Windows should be dull, and prior to Vista it was dull and that's why businesses liked it - stick XP on your AD domain, and begone Teletubbies theme. It should fade into the background. It should not be giving me an "experience" (how I hate that word when applied to an OS). At most, 3D and transparency effects should be subtle and a visual cue to the eye, not yelling "HEY LOOK AT ME, I DO TRANSPARENCY AND 3D EFFECTS!!!111eleventyone", like Vista does. Ironically, the fashion-sensitive Apple people do better in this respect than Windows. Ubuntu does better too in this respect.

    But music players are another kettle of fish - for the most part they ARE fashion driven. Release a fashion disaster like the Zune promoted by a sweaty fashion disaster like Ballmer who uses the word "squirt" in relation to it, and you have a failure.

  20. Not even the tatoo guy by lokedhs · · Score: 4, Informative

    I presume you missed this.

  21. What the heck? by kenh · · Score: 3, Interesting

    The idea of the original posting that since MS "only" sold $100M of the devices last year they'll leave the market? Or is it that they'll leave the market because the successful iPod line is eating their lunch? Or is is because we all agree the Zune isn't "cool"?

    MS has many lines of business that are under $100M in annual revenue, yet they continue on in those markets, despite not being #1 - I'm thinking keyboards, mice, MS Home Server, etc.

    The Zune is a fine piece of hardware, despite the recent bru-ha-ha over the particular model that couldn't handle leap year, and I suspect that MS will lower their investment in Zune hardware development, focus on differentiation on the software side, and (likely) focus on the "self-ripped" MP3 market (as opposed to the $0.99 per-song download market.

    A $100M revenue company selling MP3 devices that are tailored to the Windows platform should be a no-brainer, and I believe MS will turn it around. Having said that, my family has all iPods, despite most of our computers running windows...

    --
    Ken
    1. Re:What the heck? by spisska · · Score: 3, Interesting

      The idea of the original posting that since MS "only" sold $100M of the devices last year they'll leave the market?

      According to TFA, Zune revenue wasn't $100M, the drop in Zune revenue was $100M, which is a 54% fall.

      By extrapolation, this suggests that last year's revenue was around $185M and this year's around $85M.

      MS has many lines of business that are under $100M in annual revenue, yet they continue on in those markets, despite not being #1 - I'm thinking keyboards, mice, MS Home Server, etc.

      That may be, but it's not a question of revenue but of margin. Keyboards and Mice (which MS makes quite well) are quite likely moderately profitable lines. But doubling profit on them (or elimintating them altogether) would have no effect on MS' botom line.

      There is no way the Zune is even close to profitable based on these sales numbers, and based on various figures that have come out concerning Zune development.

      It doesn't cost that much (relatively) to spec out, manufacture, and rebrand Logitech hardware. It does cost a lot to design, develop, distribute, promote, and maintain a device and platform like the Zune. $85M, or even $100M a year is not going to cut it, particularly when the market has spoken and given MS a much smaller piece of a rapidly growing pie.

      The Zune is a fine piece of hardware, despite the recent bru-ha-ha over the particular model that couldn't handle leap year [...]

      The Ford Pinto was also a fine piece of automotive design, despite the bru-ha-ha over the particular model that couldn't handle a rear-end collision without exploding.

      It's isn't that the Zune is a bad product or poor design. It's that it isn't cheaper, better, easier, faster, or more convenient than the alternatives. You can argue all you want, but the market has spoken quite clearly on this point.

      A $100M revenue company selling MP3 devices that are tailored to the Windows platform should be a no-brainer, and I believe MS will turn it around.

      This is a concept I've never been able to understand. Why on earth would someone want to make (or buy) a device that only works on one platform, when similar devices work with any?

      Particularly when there is little the manufacturer needs to do to ensure cross-platform compatibility. How much did Apple contribute to the development (or suppression) of Gtkpod?

      The fact is that MS' Entertainment (or whatever they're calling it today) division has been a money-sink from day one -- full of confusion, odd rebranding decisions, failed initiatives, conflicting projects, lack of focus, and several hardware fiascos -- most notably the XB360's red-ring-of-death and the Zune's leap-second crash.

      If I was a MS shareholder (and hadn't sold out long ago when they stopped performing), I would be apoplectic about a lot of these initiatives.

      There is a time to cut your losses, consolidate your position, and focus on what you do well. MS has never been able to do this and I doubt they will start now, although in the case of Zune (and probably MSN) it would be the wise thing.

  22. Mac Business Unit Hiding Xbox Losses by MediaStreams · · Score: 4, Interesting

    I can't imagine what it must be like to work in the Mac Business Unit at Microsoft knowing that all your efforts are going to nothing more than playing accounting games to hide the Xbox disaster.

    It is staggering to grasp the magnitude of the Xbox diaster when you look at it:

    * Over 4 billion dollars in losses on the first Xbox hardware

    * Mac Business Unit moved into the Xbox division to cover up the losses

    * Absolute worst and cheapest console hardware ever created with the Xbox 360

    * Online fees for everyone playing online games effectively adding 50-150 dollars in extra revenue per console

    * Three years on the market

    And the E&D division still was only able to post a relatively tiny profit for 2008. Take away the profitable Mac Business Unit, the Xbox online fees, and other profitable parts of the E&D division and the Xbox 360 hardware is obviously still generating huge losses.

    1. Re:Mac Business Unit Hiding Xbox Losses by NeutronCowboy · · Score: 2, Funny

      1) Sunk cost. No one cares right now.
      2) First I heard of this. A quick search turns up nothing outside of general managers moving from the Mac unit to the XBox unit
      3) You've never dealt with the Atari 7200, or the PS2.
      4) The only people who care are PS fanboys who don't pay the fee. Strange, really.
      5) You're probably still talking about the XBox.

      Finally, your point that if you take away profitable parts of the E&D division, you end up with a loss.... uh, really? I would have never thought that.

      Get out of your basement and smell the coffee. MS doesn't care what the XBox used to be like; only that it represents MS (and Sony's) wet dream: a fully locked down and controlled hardware in the center of your living room. Both Sony and MS will stand behind the XBox and the PS until either one goes bankrupt.

      --
      Those who can, do. Those who can't, sue.
    2. Re:Mac Business Unit Hiding Xbox Losses by NeutronCowboy · · Score: 2, Interesting

      If it doesn't balance, it shouldn't be on the market.

      Complete nonsense. A company can put out any product it wants. If it wants to lose money on it, there's nothing preventing it.

      Seekret seekret. Lots of things are in name only.

      Seriously? That's your only reply? Not even a link? And you want me to take you seriously?

      Just because a few were bad doesn't mean you have permission to be 3-4 times worse (PS2 failure rate = 9%, 360 = ~33%).

      I have yet to see any real data on xbox failures. Care to link one? Or is this more forum drivel perpetuated as truth?

      PC gamers, with the exception of MMORPG players, don't pay fees. Neither do playstation players. Neither do Nintendo players. Neither did dreamcast players.

      And yet, the only people complaining about the Xbox fees are playstation fanboys. Weird, uh?

      Good, because both will go bankrupt and by that time there will be a new startup to challenge Nintendo with a slightly less crappy business model.

      I can only hope so. In the meantime, I'll enjoy my Xbox until something better comes along.

      --
      Those who can, do. Those who can't, sue.
  23. Apple exiting iPod classic market by sheldon · · Score: 3, Funny

    Seriously, I've been amazed at watching the ipod over the years. They came up at 40 gig and it was quite remarkable. I bought an 80 gig model about 2 years ago when they had introduced those. But now you go to the stores and it's hard to buy a classic. They are pushing the nano.

    That's usually the first sign of a product hitting it's peak in the business cycle. When they stop caring about the consumer, and start pushing the models which have the highest profit.

    If I were MS, I'd stay in this market. Apple hasn't changed the ipod fundamentally since they introduced the color screen and videos.

    1. Re:Apple exiting iPod classic market by tepples · · Score: 3, Interesting

      Apple hasn't changed the ipod fundamentally since they introduced the color screen and videos.

      O RLY?

      I guess Microsoft's strategy to fight iPod could involve merging Zune into Pocket PC.

  24. Obligatory Bad Pun Thread by Dystopian+Rebel · · Score: 2, Funny

    "Gee, gone so zune?"

    --
    Rich And Stupid is not so bad as Working For Rich And Stupid.
  25. Fucking bravo, Microsoft. by pslam · · Score: 5, Interesting

    That means Microsoft have not only managed to damage to MP3 market to the extent that Apple "won", but now they're dropping out too. If I weren't convinced they were just short-term reactionary fools I would believe they had it planned all along.

    What am I going on about? Well, you see, back in the days just after iPod, Microsoft introduced this thing called PlaysForSure. It was a system to provide a variety of DRM options - single track purchase, promotion with timeout, monthly fee all-you-can-eat, limited play count, and so on. This in itself would have provided a superset of the functionality iTunes provided.

    (For the record, where I stand: DRM must die. Three times. Horribly. Preferably acid bath.)

    Sounds great, at least from a technical and business standpoint, right? Unfortunately, just to remind us that they're Microsoft, in order to get a PlaysForSure badge on your product, and to be allowed to use the system whatsoever, you have to pass certain certification processes. That includes making sure you have a good startup time, good inter-track delay time, fast database indexing, and so on.

    Still sounds great? Aha, but just to remind us they're Microsoft, they're the people that design the protocol, and they make damn sure it's near-impossible to actually implement a good player from it. The database updates and queries are so horribly defined you'd struggle to get good performance out of a proper SQL-like database running on a PC, let alone a tiny little device with 1MB RAM. The requirement to support PlaysForSure means you must use MTP protocol, which is another botched abortion of a protocol. It also requires that if you use MTP you cannot use Mass Storage, further annoying your customers and very neatly if "accidentally" meaning they don't work on Macs. And then there's the encryption itself which is so horribly over-the-top and poorly implemented (you MUST use Microsoft's libraries) that it badly impacts player performance and its battery life.

    So Microsoft screw the entire non-Apple MP3 market for a couple of years. Then they bring out their own PlaysForSure player. Except it's not PlaysForSure. You can imagine the language used where I worked (and presumably other companies). They decided that it was too hard to implement their own spec, so they make a player which doesn't comply to it. It's not even in the set at all - it's totally incompatible.

    After an electronics-generation of fucking up the non-Apple MP3 market, then screwing up their own solution, and now after (very likely) ditching Zune, they've basically done almost exactly the right set of steps to put Apple into a lead that will be hard to make a dent into.

    I stick with my decade old opinion that you don't partner with Microsoft - you watch your back.

    1. Re:Fucking bravo, Microsoft. by nine-times · · Score: 4, Interesting

      So Microsoft screw the entire non-Apple MP3 market for a couple of years. Then they bring out their own PlaysForSure player. Except it's not PlaysForSure.

      Yes, I still have a hard time understanding what Microsoft thought they were doing there. They screwed all their partners there by destroying the idea of PlaysForSure, in that suddenly those songs wouldn't play, at least not for sure. Putting "PlaysForSure" on any product after that was a joke.

      I've also thought, in hindsight, that people have greatly underestimated the degree to which Apple hurt Microsoft with the iPod. Most people used to talk about the "halo effect", meaning people would like their iPods so much that they'd be interested in looking at other Apple products, but there were much bigger problems than that.

      Microsoft put a decent amount of money into developing Window Media formats, promoting them, pushing support onto every product they could, and selling media companies on the idea of DRM. Most people are quick to note that Windows Media gives Microsoft increased vendor lock-in, since they didn't provide or allow support for other platforms, but it did much more than that. It allowed them to create strategic partnerships with large media companies, and more importantly let Microsoft get their hooks into all sorts of other markets. If they owned WMA and WMA was *the* audio format people were using, then they could own the MP3-player market as well as the cell phone market for phones that would provide media capabilities. Likewise, it could give them an edge in competing in devices like consoles or set-top boxes that might include media-playing capabilities. Further, any embedded systems (e.g. computerized audio systems in cars) would potentially be forced to license the embedded version of Windows. All of these sorts of things apply for video, too.

      But apparently someone at Microsoft was snoozing and didn't notice that the iPod was growing in popularity. Since the most popular MP3 player didn't support WMA, it meant that people weren't going to rip their audio collections as WMA, and also they weren't going to be buying those DRM-wrapped WMAs. Since the only DRM they did support was one that no other online stores could use, the record industry was eventually forced to drop DRM, which then lead to an even bigger problem for Microsoft. The great selling point for WMA was that it allowed a nearly universal (except for on the iPod) DRM technology, and not much else. I can only guess that this damaged Microsoft's leverage with media companies, but more importantly it means that it doesn't make any sense to sell WMAs on online stores. The only sensible formats to use for online stores are MP3 and maybe AAC.

      Further, since people are much less likely to use WMA, the benefit of providing support in consumer electronics and embedded systems is virtually neutralized.

      Sorry for the random (and poorly organized) rant, but I thought it fitting to provide some context. It seems to me that the Zune really wasn't some random unimportant side-product for Microsoft, but rather a desperate attempt by Microsoft to rescue a lot of their work in developing control/lock-in in a variety of markets. I think that, if they're going to drop the Zune, they may be on their way toward abandoning the media dominance they've been chasing for several years.

  26. Re:Zune is much better than iPod by w00d · · Score: 3, Informative

    Agreed. People who badmouth the Zune have either never owned one (the "lol zune sux!" crowd), or have only used the original 30 GB model (aka Toshiba Gigabeat) with 1.x firmware. The second gen Zunes are fantastic and I have never regretted buying one (80 GB model) after owning several generations of iPods.

    I love the FM radio as I listen to NPR at work. I love the wireless sync and marketplace, which EVERY Zune model can use, but only the iPod Touch and iPhone are able to do. I love the big, vertically-oriented screen. I love the clean navigation menus on the device. I love the ZunePad, which is quicker and way more intuitive to use than the gimmicky Click Wheel.

    I also really love the Zune software. It made me appreciate just how bad iTunes really is, which most seem to be in denial about, but ignorance is bliss as they say. I have every intention of buying another Zune when this one no longer serves my purposes.

    If people would get over their prejudices about Microsoft and actually try the Zune, I'm sure they would be impressed by it. MS even deleted their own name from the product (it appears only at the bottom of the "About" screen) because of the popular belief that MS can't put out a "cool" product.

    tl;dr: zune > ipod

  27. Re:Zune is much better than iPod by phillymjs · · Score: 2, Interesting

    Seeing as the zune and ipod are the same price, why WOULDN'T you pick the zune?

    Because there are a lot more accessories and add-ons available for the iPod.

    The iPod got off to a good start in terms of market share, which led to more accessories being made for it, which no doubt influenced more people to buy it.... classic positive feedback loop. It's like the OS market back in the 90s, in reverse-- there, Windows ruled the roost and the Mac was a tiny, shrinking niche. Walk into a CompUSA back then, and nearly everything on the shelves was for Windows. The Mac section was three shelves in literally the farthest corner of the store from the entrance.

    With the Zune, instead of being the 800-pound gorilla in a given market, Microsoft is finding out how much fun it is to have to compete against that gorilla.

    ~Philly

  28. Re:I actually own a Zune, and like it! by Svet-Am · · Score: 2, Interesting

    Until very recently, I owned and _LOVED_ a first generation Zune 30.

    The Zune software makes iTunes look like an Excel spreadshet, is much lighter weight than iTunes, and includes features (group mix) that I actually like and used.

    Eventually, though, I sold my Zune 30 because I was tired of having to hack it to get it work with my installation of Windows XP x64. I'll never understand why Microsoft intentionally left XP x64 out in the cold, but they did so I had to move on.

    I replaced it with a Toshiba Gigabeat S60, so I essentially still have my Zune, with an upgraded hard disk size and minus the WiFi (which I rarely used anyway).

    If Microsoft made the Zune compatible with XP x64 (officially), I'd be a Zune owner again in a heartbeat!

    --
    [move .sig! for great justice, take off every .sig!]
  29. Hoist by your own petard by fermion · · Score: 2, Interesting
    It was all about DRM, and non compatible players, and near monopoly status. MS could not really complain because it has been playing this game for years, with, for example,the embrace and extend HTML. Then there is the random changes in format. This worked well for MS Office, as it forced everyone to move from one version to the next, but did not do any good for the Zune when MS decided that it would randomly develop a new DRM system and ignore playforsure. Then, as it was feeling the pressure of competition, it followed the drop of support for IE on Mac with the non release of Zune Drivers for Mac.

    So, MS only drivers, no Playforsure support and no Apple protected ACC support. Of course of this would have been a non issue if MS supported universal standards(a media player does not need customer drivers if it is just treated as removable drive) and if MS focused on DRM free music. In fact the primary driver that kept Apple in the forefront for so long is the music industry insistence on DRM and the computer industries support of that position. We will see how apple fares now that Amazon has cheaper drm free music, but I think Apple will be ok now that people are used to used going to iTunes.

    But I don't think that MS has to exit the market, just remember that the pupose of MS is to provide the low cost option. The Xbox is successful because it is the cheaper than a PS3, as the xbox has no HD media capability. The Zune is not cheaper than any iPod, except for the touch, so why buy it. If a PC were as expensive than the mac, how many people would buy it? Sell a zune for $100, and it will be on the top of the charts, just like the xbox. Or they could do something innovative and include wireless cell phone access, like the Kindle, and inlcude one year of subscription service. But that would innovative, not what MS does.

    --
    "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
  30. Re:Just because by timeOday · · Score: 4, Informative

    I don't see how the term "dumbed-down" can really even apply to an mp3 player. How advanced can you expect it to be?

    Here is a list of features I've found very useful on my iAudio G3 over the couple years I've owned it. Some seem obscure, and I never knew about them until I looked for them because I found a need. (I'm not saying the iPod lacks these features, since I just don't know).

    • Graphic equalizer
    • Balance left/right
    • Sleep auto off timer
    • Microphone and voice-in recording
    • FM tuner

    Plus I have it set to work as a USB drive, and show/navigate my tracks via the directory structure (no ID3 info required). Just how I like it. And it runs on a standard AA for about a month of my typical usage.

    So, I prefer lots of options, even if I never need some of them.

  31. Committees aren't cool by DingerX · · Score: 2, Informative

    The Zune problem was that they started with a great idea, and then removed its testicles in committee. PMP + Wifi? Yes. Music is something humans are hard-wired to share.

    Then it hits committee. Share music? That's illegal! Oh wait, it depends? Well, even if it's not illegal, we need to monetize this feature. Just like "Vista-Capable" was a good idea, until they decided to change the standards to suit their suppliers. Xbox 360? You're on the money. Committees don't see shifts. People do. And when you give a committee lots of money and say "make version II", you see something very expensive. Netbooks? Microsoft saw them coming. That's why they came up with the UMPC specification. Oh wait, you mean something cheap? Again, committee think. It's why GM cars have all the cupholders.

  32. Re:Just because by nine-times · · Score: 4, Insightful

    And about the Zune having DRM (is what I heard), I don't really understand that because it comes with a built-in wireless system so you can share your music with any other nearby Zune. Which seems like the opposite of what DRM is trying to accomplish.

    Aren't those shared songs DRM-wrapped, meaning they're exactly what DRM is trying to accomplish? DRM isn't about trying to prevent "sharing", but rather about trying to control what you can do with the music you've bought.

    Anyway, I don't think it's really all about the Zune being "uncool". I'm going to go out on a limb and make the following claim: The problem people have with the Zune is not the Zune itself, but rather that it's yet another lame attempt by Microsoft to take over a market that they perceive as a threat. Microsoft (rightly) perceived that the iPod was an indirect threat to their OS as well as their WMA format, and their response was to release an "iPod killer" that failed to understand the MP3-player market to a laughable degree.

  33. My Zune Prediction From June, 2006 by broward · · Score: 4, Interesting

    Keyword graphs show the story...

    http://www.realmeme.com/roller/page/realmeme?entry=zune_meme_rerun

    Microsoft entered a market nearing its growth inflection point with a marginal product. They thought they could win through hype and Microsoft branding.

    Microsoft Vista is failing for similar reasons.

  34. Re:Just because by Z34107 · · Score: 2, Insightful

    When I was in Middle School, I bought a Muvo TX FM (I think that's its name) for $30 at Wal Mart. A whopping 256MB MP3 player.

    But, it has all of those features. Play by folder and not by ID3 tags (though it even supports scrolling Asian character sets for those!), a graphic equalizer, sleep-off timer, FM tuner and microphone...

    I've never purchased another one. It's tiny, functions as a USB drive, and I just sync it with my computer before I leave for work (or now school) every morning. Who cares how "cool" it is if only the earbuds leave your pocket?

    --
    DATABASE WOW WOW
  35. I used to be just like you. by bigtallmofo · · Score: 5, Interesting

    I have a brown Zune too. When I first got it, I absolutely loved it. 30 GB of storage, ability to play photos, videos and music either in headphones or on my TV. Then a strange thing happened... Last September I wanted to get a mobile device that allowed me to surf the web. I saw my friends' iPhones and thought it was a good experience. "No problem" I thought. I'll just check out this Windows Mobile 6 stuff. I started on a hunt to find a non-iPhone that browsed the web as well as an iPhone. I went to AT&T stores (since I had their service already though my contract had expired), Verizon stores and Sprint stores. At the time, every other phone's web surfing was a J-O-K-E compared to the iPhone. A joke. I can't tell you how much it pains me to say that, since I am in reality a Microsoft fan and have used their development products professionally for over a decade and a half.

    So I got the iPhone 3G. My Zune was then in the glove compartment of my car for a few months. I pulled it out a few weeks ago to try out the Zune games that seemed to be taking off. What I used to think was a sleek, intuitive interface on the Zune now looked clunky. The entire device actually felt cheap. The Zune hadn't changed though - I did. I got used to the iPhone. But anyway, I upgraded my Zune firmware, installed the Zune Games and actually tried the default ones out. Texas Hold'em was actually fun. But man, the experience is nothing - NOTHING - like the iPhone.

    I guess I'll try selling my brown Zune on eBay before they become totally worthless.

    --
    I'm a big tall mofo.
    1. Re:I used to be just like you. by RudeIota · · Score: 3, Interesting

      So I got the iPhone 3G. My Zune was then in the glove compartment of my car for a few months. I pulled it out a few weeks ago to try out the Zune games that seemed to be taking off. What I used to think was a sleek, intuitive interface on the Zune now looked clunky.

      The same thing happened to me, as well. The only thing I miss (and probably you do to) is the huge amount of storage space the Zune has, compared to the iPhone.

      --
      Fact: Everything I say is fiction.
    2. Re:I used to be just like you. by tmalone · · Score: 5, Funny

      ...I haven't touched Pocket IE in a very long time.

      Neither has Microsoft.

  36. Re:Just because by Miseph · · Score: 2, Insightful

    Works at what?

    If you mean to say it works at hogging resources and weaseling its way into all sorts of other processes and applications where it is of dubious (at best) use, then sure, but if you mean to imply it's a better music player than just about any other option you're full of it.

    As far as I'm concerned, the two single biggest drawbacks to iPods are that they cost twice as much and you actually have to install iTunes.

    For the record, I still don't see what's so damned hard about making an MP3 player connect to a computer as a flash hard drive. Just let me copy/paste the files through whatever file browser I use, and skip this whole syncing nonsense if I don't want to do it. And for all the people who do (for some reason) find that their media player is the best tool for copying files onto their MP3 player, they can do so with any player they want rather than the one their player's manufacturer wants.

    --
    Try not to take me more seriously than I take myself.
  37. Re:Ever Again by TaoPhoenix · · Score: 2, Insightful

    This is that critical mass thing again. PlaysForSure was still early enough in the general maturity of the net that it's been kinda washed over.

    But to pull that stunt *twice* makes an event that will show up at the more dangerous business-analysis-article level, and that's far harder to get away from. Also, it coincides with a strange emergence of audience maturity awareness not even present 8 years ago.

    You used to form opinions about stuff from 3 newspapers and *the local retail store*. Products created their own gestalts. Something shows up new, "it was cool" ... because it showed up on the shelf.

    Now we're asking each other about stuff, and *leveraging our own experts* so that the classical media begins to sound lame if they throw too much eggnog into their spinpuff.

    --
    My first Journal Entry ever, in 8 years! http://slashdot.org/journal/365947/aphelion-scifi-fantasy-horror-poetry-webzine
  38. Re:Could try "Windows7 capable" by TaoPhoenix · · Score: 2, Funny

    Erase the bottom of the Z with whiteout.

    7une.

    --
    My first Journal Entry ever, in 8 years! http://slashdot.org/journal/365947/aphelion-scifi-fantasy-horror-poetry-webzine
  39. Re:Zune is much better than iPod by Smorkin'+Labbit · · Score: 2, Interesting

    > Seeing as the zune and ipod are the same price, why WOULDN'T you pick the zune?

    1. It doesn't implement the massdrive USB spec -> Not possible to use as a harddrive (which is especially bad for the large-capacity one); there are drivers to download which makes it possible but it still means I cannot just plug it into any old computer and use it for files.
    2. Calendars, addresses and notes: I use this functionality, especially the notes thing where you can hyper-link notes internally and to music/video on the drive. Geeky, yes, but for me it's useful. (Caveat: I haven't tried the newest firmware for Zune so these things might be available now.)
    3. I live in Europe -> Can't buy a Zune
    4. I use a Mac now and then -> Can't use the Zune with it

    But of course my reasons might not be interesting for you, and instead the FM radio, Wifi etc. on the Zune, and if so you should definitely avoid the iPod.

    I only wanted to mention that there are actual, feature-based reasons why someone might want to get an iPod rather than a Zune. And of course this comparison is only interesting for iPod Classic / Nano; iPod Touch is something else completely. I strongly suspect that iPod Classic is not selling that much any more...

  40. Zune was never going to work, heres why... by gnalre · · Score: 3, Interesting

    The zune was never going to be a the ipod killer that MS hoped it would be and it is difficult to see why MS entered the market.

    Basically if you are going up against the gorilla that is Apple in the ipod market, you have to have something that differentiates markedly. The only thing the zune had was the wireless sharing. However two problems with that. Firstly it was hopelessly crippled by MS usually DRM fan boys. Secondly it relied on enough mass usage of the zune so that there was a chance someday you might meet another zune user. If you took that away you were left with a nice MP3 player competing with all the other nice non apple MP3 players in a sea made by Apple. And remember an ipod is not just a music player but is the focal point of a whole industry providing ipod addons. Zune never had a chance.

    The question is what could compete with ipod? History has shown that it would either take a whole new technology shift(wireless music ???) or Apple to make a mis-step. So far Apple has shown they are not likely to do the latter, in fact you have to be impressed how they do not sit back and wait for the competition to catch up, but are constantly pushing the envelope. This makes it very hard to compete against. You only have to look how a few months after the zune was produced apple produced the itouch so totally changing the market before the zune ever got going.

    So what about MS. Probably what they should of done instead of spending millions on Zune was got into phones. Here they have a slight advantage in that their software runs the corporate world so if they made a phone that seamlessly connected then corporate world would probably buy a few.

    However even here they have a few problems. Firstly it would eat away at their mobile OS market, since they would be competing against the same people who buy there software from them at the moment. This would almost certainly push these same manufacturers to android and the like.
    Secondly MS hardware sucks. They just do not have the ability to integrate the software and hardware into one unit, in the same way apple do. This must be partly to do with their reliance on 3rd party hardware suppliers to do the hardware design, then having to fit their software to it.

    In the end of the day, MS should really concentrate on doing what it knows best, making operating systems for gray boxes

    --
    Choose your allies carefully, it is highly unlikely you will be held accountable for the actions of your enemies
  41. Re:are you kidding? by pslam · · Score: 4, Interesting

    Blaming Microsoft for the fact that Apple doesn't support MTP is ridiculous. Apple locked down iTunes so that you can't really use it with other players, and they tried to lock down the iPod so that you can't use it with other music management applications.

    You missed my point. They specified that you can only use MTP and no other protocol. You were not allowed to have a dual-protocol device, which was perfectly possible. Of course, they eventually settled for allowing this, but not before the damage was done - vendors implemented MTP instead of the ubiquitous Mass Storage (MSC) and when you've got limited resources to do things, you settle for one protocol. So a mass of MTP devices appeared, which neatly didn't work on Mac.

    And, of course, just to let us know they're Microsoft, MTP wasn't supported unless you had Windows Media player 9 installed. And of course, WMP9 wasn't supported unless you had Windows XP installed. Very neat.

    I was there when this all happened and it was as obvious as a 100ft tall pink elephant. They got away with all this crap simply because the US and EU were busy with the bigger fish of browsers, openness, protocol compatibility and all the other monopolistic practices. I don't see why you should give them the benefit of the doubt here - there's decades and hundreds of examples of Microsoft doing the same thing over and over. This is no different.

    As for "screwing the entire non-Apple MP3 market", I think you give Microsoft too much credit; Microsoft has had virtually no impact either way. If you want an MP3 player, there are plenty of choices that cost almost nothing.

    You are wrong. If you are a non-Apple MP3 manufacturer you must go with PlaysForSure. It's a tick-box. The mass market wants tick boxes, and customers wanted P4S. If you didn't have P4S, you didn't sell. It's sad and believe me it's true. Microsoft screwed the market by crippling all the non-Apple vendors with a shitty product.

    MP3 players are dead anyway; like PDAs, they are just becoming part of phones.

    That is patently untrue. There are so many factors which will ensure they'll be around for years. Form factor is one. Price is a fucking obvious one too.

    Also notice that the phones which list music playback as a strength have all gone with their own implementations. Notice how big the companies are that had the guts to do it: e.g Nokia. Sadly we're left with a bunch of walled-garden solutions, iTunes included.

  42. would be a first for them to cut failing business by Locutus · · Score: 2, Interesting

    It would be a first for them to cut failing business which was created to keep a competitor in check. Microsoft has many money losing businesses, ones which lose billions annually but their purpose is not necessarily all about being profitable, it's about limiting the growth of the market leader. Windows CE was created to slow or stop Palm's growth beyond the PDA and Microsoft has lost over $15 billion on that. The Xbox was created to slow or stop Sony from growing the PlayStation market beyond the console and Microsoft has lost many billions on that. The Zune was created to slow the Apple iPod market and they've lost a billion or two on that.

    So with Steve Balmer still in charge and the Windows OS making up over 80% of Microsoft's profits and with huge profit margins, there is no history to show a willingness at Microsoft to cut any of these market protection based projects. Cutting the Zune would probably be the first one to be cut and not succeeded at its goal. IMO.

    LoB

    --
    "Anyone who stands out in the middle of a road looks like roadkill to me." --Linus
  43. Compete on price by htnprm · · Score: 2, Interesting

    What I don't understand is, why Microsoft hasn't (That I have seen) tried to compete on the Zune's price with the iPod. Every time I've ever looked at a Zune, it has always been more expensive than an iPod. As stated, Microsoft won't be able to compete on the 'cool' factor. But essentially, what is a Zune or an iPod? It is the size and capacity of these devices that has always been a winner.

    In New Zealand (Where Zunes aren't available), you can't really get a high capacity (Over say 8/16 GB) portable media player at a reasonable price, other than an iPod. So if you're after a large capacity, small portable media device, you'll look at your options:

    1) Does it play MP3s? (And this would now be, Does it play video. h.264 MPEG-4 has won that battle, so don't try to fight a format war).

    2) Which is the cheapest one that supports the features I want?

    Microsoft needed to under cut Apple on the price. They have deep enough pockets.

  44. What about Sony? by chaz373 · · Score: 2, Interesting

    I was an early adopter and had bought one of the first RIo's. It was expensive, poorly built, had a cruddy UI, and could hold at most 15 songs at 128 K. But it was small and allowed me to have music while mountain biking. My cousin, a sales manager for a domestic high end audio company back then told me that the MP3 player to wait for would be from SONY. After all, Sony was a world leader in audio and personal electronics. They had invented the walkman. They had years of acclaimed industrial design, a mature sales and distribution network, high customer awareness, efficient marketing, and even owned a record label that would certainly facilitate a media sales conduit. So what happened? When we talk about the Zune's inability to gain market traction, I believe there are lessons to be learned from Sony. If a world leader in portable audio electronics can't make a dent, then there might be more to this than some "cool" factor or "apple sucks" reasoning.

    --
    There is no security when liberty is sacrificed.
  45. Windows 7 = cool by duckInferno · · Score: 4, Funny

    Any Windows 7 beta user will tell you that Microsoft are definitely capable of "cool". I fully predict Win7 to be a resounding success, both in sales and in actual performance and usability terms. This is personal, but I find it to be superior to OS X even in its current beta state.

    Success aside, the "coolness" of this OS could lead to a rise in the number of MS fanbois (yes they do exist). This, combined with MS's newfound "coolness" (assuming it persists), could just breath new life into their Joe Sixpack consumer products like the Zune.

    --
    Fool me once, shame on you. Fool me twice, watch it -- I'm huge!
  46. Re:would be a first for them to cut failing busine by Locutus · · Score: 2, Interesting

    they cut Pen for Windows too but that was after they pretty much killed the one company at the time who was really building momentum, Go Inc. As far as Mac based apps go, Microsoft has very little strength or leverage on that platform. There is only Apple distributing and they have their own stores. Is Flight Sim really in a market which has or had the ability to threaten Microsoft's market position?

    There is one app, Microsoft Money, which was threatened by Intuit's Quicken. Microsoft tried to tie MS Money to other products to beat Quicken but for some reason that failed. But then again, Quicken has not done anything to threaten Windows, they pretty much only support Windows and have a half effort still doing a Mac app. If they came out with a Linux version, MS would pull MS Money out or back one of the others and spend a couple of billion trying to knock Quicken down.

    So while the iPod market still gets into many many Windows users hands, brings in Apple iTunes, and puts that pretty Apple logo in their mind for the next time they want a new PC. Well I just don't see them dropping the Zune. The iPod market is too big of a market threat to Windows to just leave it all alone. I don't think they'd ever drop the Xbox or MSN and their search. I'd me very surprised if they did drop it while the iPod still dominated the market.

    LoB

    --
    "Anyone who stands out in the middle of a road looks like roadkill to me." --Linus
  47. Zune Marketplace by TheCow · · Score: 2, Interesting

    I bought an original 30Gb refurbished Zune last year. I don't use it a lot, but when I do I enjoy the experience, I have put videos on it for my daughter (3 years old), pod casts, pictures, and any music that I want.

    Two months ago Microsoft changed the details of their Zune Marketplace subscription offereing unlimited downloads for $15 per month. Not too different from Rapsody and the such, however there is a silver lining, you also get to download and keep 10 songs per month which they remove their DRM from. Some music is also in mp3 format. That 10 songs sold me on that subscription and I signed up, and have taken advantage of the service as much as I can. (BTW you can use the service on three PCs and two Zunes) Maybe it is just a ply to increase their numbers, but it worked for me.

    Personally I hope they don't can the line. They have some work to do, but it is a solid product, just not as "cool" as an iPod.

  48. Re:Cool? by aristotle-dude · · Score: 2, Insightful

    You can be "cool" simply by buying a shiny toy with an Apple logo? I guess "cool" isn't what it used to be.

    Being cool is a state of mind. It has nothing to do with what you own. You are cool if you are happy with who you are and don't care about what other people think of you. An iPod will not help you achieve that. At the same time, buying something other than an iPod in an attempt to be "different" than the masses will just make you look like a zealot or anti-apple fanboy.

    --
    Jesus was a compassionate social conservative who called individuals to sin no more.
  49. Re:Just because by cbhacking · · Score: 2, Informative

    Technically, no the files are not "DRM wrapped" as that would modify the files themselves. Instead, they go into a special folder on the Zune with associated metadata that limits the number of times you can play each song.

    --
    There's no place I could be, since I've found Serenity...
  50. Re:Hardly Surprising by im_thatoneguy · · Score: 2, Insightful

    I have a brown zune you insensitive clod!

    Microsoft won't kill the Zune. Or at least they better not and here is why:

    1) They would never be able to sell music again ever... EVER. After play for sure people were cautious to buy another microsoft DRM'ed product. "Fool me once shame on me..." Microsoft wants to sell music through Xbox, through Windows Mobile, through the PC. They want to sell music in the future. Killing the Zune would end that dream. Killing the Zune would end Microsoft's Live Media sales in the in the music department permanantly.
    2) They want to integrate it into WM for free. As soon as Windows Mobile has Zune then hit has a decent media player. It's already running a custom Windows Mobile build so it shouldn't be too difficult.
    3) The XBox. The XBox is still successful (Profits were up.) Microsoft already sells movies. It's only a matter of time before the music store is available as well.
    4) They're in second place! A distant second perhaps. But it's hard to argue to kill a team which has succesfully managed to go from nowhere to second place in only 2 years.

    We might not ever see another hardware Zune. But the Zune concept isn't going to die. I think we're going to see Zune follow the classic arc of:

    1) Play for sure commodity software.
    2) Hardware iPod competitor
    3) Commodity software.

    Microsoft probably wants to get out of the vertical market competition with Apple. They aren't winning and they can see the writing on the wall as well as apple. The 'music player' is nearing the end of its marketability. It's time to to start fighting over the 'all in one' device. The cell phone.

    You put Zune on every Windows Mobile 6.5 device and you've got more Zune Players than iPhones. How is that for a reversal?

  51. I've had the Zune, iPod Nano/Video, and iPhone by JohnnyComeLately · · Score: 2, Interesting
    Just to piggy back on what's probably been said 3,000 times, but I've had the Zune and it won't really be missed.

    I bought it originally because I had a PC and I thought it might work well with MediaPlayer. I was right and I was wrong. Under the first version (I think 9) it worked ok, but once I upgraded to the suggested MP10, it was a huge pain. I think the video was originally a nice feature, but again, DRM made things a pain. I had music I legally owned that it wouldn't play.

    Then, of course, accessories were next to impossible to find. Want a rugged rubber case (like my zCover for the iPhone)? Not going to find one (at least not in your first 5 stores you visit). I walked into Fry's, which is a geek supermarket on steroids, and they have one shelf (back then). Now there's maybe a little more, but you'll find two AISLES of stuff for the iPod.

    When the iPhone came out, there was finally an iPod killer. Zune made a great try, but it's M$ after all. They had to keep corporate interests. Now my iPod Video sits on the shelf, while I go everywhere with the iPhone. I'm listening to it right now at work.

    One last thing killed the Zune for me. "Lock" doesn't. Yeah, I can't change songs, but the unit powers up to show you the lock symbol, which the iPod doesn't do. May not sound like much, but I make a 4 hour ride monthly on my motorcycle. With the Zune in my motorcycle jacket pocket, set to "Locked", the unit would die far before the end of my ride. The unit would get touched, power up, show the "locked" for awhile and then power down. I can make the 8 hour round trip with my iPod and iPhone set with the lock on.