Mixed reaction to Microsoft Zune 'iPod killer'
/v3-uk/news/1974694/mixed-reaction-microsoft-zune-ipod-killer
24 Jul 2006, Will Head , V3
Analysts have given mixed reactions to Microsoft's Zune iPod rival, plans for which were officially confirmed today.
Michael Gartenberg, at Jupiter Research, believes that Microsoft faces three challenges with Zune: creating a technically competent challenger; creating a lifestyle device; and creating a platform.
Gartenberg argues that producing a competent challenger to the market is the easiest task.
Apple has already shown what the market wants and, by focusing solely on
music and video and omitting game functionality, the Zune is going to be easier
to market.
On the lifestyle front, Microsoft could have a problem. Despite following the
lessons learned with Xbox by creating a separate brand distanced from Microsoft,
Gartenberg wrote on the Jupiter Research blog that it is going to be "hard to
create the same level of cachet that Apple has with the iPod".
Microsoft must also recognise that the iPod is more than a standalone device, and has many official and third-party accessories.
"No doubt [Microsoft] will work hard to make sure that they fill some of the gap directly with first-party stuff, but this is one area where consumer choice goes a long way in making the platform a success," wrote the analyst.
Gartenberg is largely positive, however. "When Microsoft decides to enter a market, you cannot ignore the impact it will make," he said.
"It is likely that by force of will, and spending lots of money on marketing with a high cost of acquisition on new users, they will capture some market share."
However, Carl Howe, at Blackfriars Communications, disagreed that money can buy market share.
"Microsoft spent in excess of $10bn on MSN, and it has not really made a dent in Yahoo or AOL," he wrote on the company blog.
"And it's working on similar results with Xbox 360, where it lost $1.3bn last year promoting a platform on which it loses more money the more units it sells.
"Now we know why Microsoft notified Wall Street that it was going to be spending more money this year. This programme has red ink written all over it."
Do you agree?
That Old 800-pound Gorilla
It is unfortunate that Microsoft 1) is so hell-bent on dominating the world and 2) has enough resources at its disposal to just throw money around until it cripples other, better products in the interest of winning with its own mediocre products. While on one hand you have to admire Gates, Ballmer et al for their ruthless, systematic tactics, on the other hand, they are pathetic. Alas, their "sickness" comes at great cost - a lack of choice for consumers.
Posted by The Misanthrope, 24 Jul 2006
It's 1989 all over again
Here we go again -MS copying Apple.
Posted by Bronco, 25 Jul 2006
iPod Killer? Not!
Two comments. 1.M$ have been notorious for vaporware over the past few years (Vista where art thou?), so they really need to deliver big time on this. Just being M$ is not enough to win market share. iPod owners have invested heavily in their product and are unlikely to ditch it in a hurry. WiFi sounds interesting but what's the story? I've read 3 different articles with very different ideas on how it'll work. They better have it right straight away or the market will leave it behind. 2. The Zune site, what the? Sorry doesn't inspire confidence or interest. If this is an indication of the marketing we can expect, Steve Jobs must be feeling pretty good right now.
Posted by Peter, 25 Jul 2006
Off to a weird start it seems
What's with the animation of Steve Balmer molesting the rabbit and then some little munchkin shows up for some bunny huggin while Balmer just looks on. It's boarderline disturbing.
Is this thing going to run a portable version of MS Bob?
I honestly don't see a lot of room in the market for a new platform, even if M$ throws money at it for years (I guess this is why the Windows WGA tool was sent out to generate some much needed revenue).
Posted by Erik Dural, 25 Jul 2006