Much is being made of Microsoft's recent release of the Zune HD. The latest incarnation is said to be Microsoft's strongest effort yet to remake the Washington Generals of media players.

With its touchscreen interface and web connectivity, the new Zune is taking square aim at the iPod Touch. And it has a long way to go, as according to recent reports the Zune's market share is currently around 1.1 per cent.

Adding up the features, the Zune is a pretty impressive device. But will it be able to put a scare into the iPod branch at Apple? Probably not.

The problem with the Zune is that it merely measures up well with the iPod. Not great, just well. When you're trying to dethrone a company with a stranglehold on the market, "just about as good" simply doesn't cut it.

The biggest problem Microsoft has is the lack of a "killer app" with the Zune HD. There's simply nothing about it that puts the Zune HD head and shoulders above the iPod and makes consumers sit up and take notice.

By contrast, let's look at Microsoft's other consumer electronics outfit: the Xbox. When Microsoft entered the market, it faced a dominant force in the Sony Playstation similar to the iPod in the media player field. However, with the Xbox Microsoft had a distinct advantage in its exclusive distribution deals, most notably the Halo franchise. While the products stacked up pretty equally in other terms, the Xbox had the one game that everyone wanted, and that drove users away from Sony.

In this case, however, there simply is not a compelling reason to jump ship from the iPod. iTunes is the dominant force in online music, the Zune software store is but a fraction of the App Store, and the unique features of the Zune are little more than novelties to most buyers.

Bottom line? Until Microsoft can find a way to make the Zune more than "just as good" as the iPod, that market share won't be making much of a jump any time soon.

18 Sep 2009