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Is the Zune Getting Zapped?
A 54 percent drop in sales could spell the end of Microsoft’s portable player.
Microsoft Zune
According to Microsoft’s filing with the Securities and Exchange Commission, Zune revenue decreased $100 million or 54 percent during the holiday quarter.
January 26, 2009 | by Rachel Cericola

Last week, Microsoft announced that the Zune was really not as wonderful as this guy once thought. Well… Microsoft may be slightly more delusional, but Zune Man and sales don’t lie—Zune numbers are in the toilet.

On the heels of Microsoft layoffs, the company said (via WSJ) that Zune sales were down a whopping 54 percent during the 2008 holiday season. Meanwhile, Apple is laughing all the way to the bank. Although it seems tiny, iPod sales were up 3 percent over the same period. That’s no small feat, given the current economic climate. 

So the big question is: Can Microsoft save the Zune? More importantly: Is it worth saving? We have seen rumors of a Zune phone for a while now. Although it seems unlikely at this point, I’m not sure if that would even help. After all, it just seems too little, too late.

I am wondering how many of you out there have a Zune. Why did you buy it? Are you pleased with the unit’s performance? Sound off in the comments section below.



Rachel Cericola - Contributing Writer
Over the past 15 years, Rachel Cericola has covered entertainment, web and technology trends. Check her out at www.rachelcericola.com.



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Comments (13) Most recent displayed first.
Posted by Michael  on  02/13/09  at  08:14 PM

I would agree the Zune software leaves a LOT to be desired, but again, there are features you won’t find anywhere else, and the last update was VASTLY improved. If you don’t count the bricking thing. :-)

Once that passed, though, I have an integrated audio device that streams and doesn’t have to dock.

I still say the best DAP software is no software at all, but for hardware the Zune couldn’t be beat. Being able to buy the track you’re listening to on the radio? Fantastic.

If you want ease of use and no strings, AND a realistic power supply, go Sansa! I love it.

I have way too many players, I suppose, but it’s hard to find just one that fits. I bought the Nano refurbed for exercise, the Zune refurbed as my music machine at home and sometimes outdoors, and my Sansa refurbed for everyday.

Posted by memberj  on  02/13/09  at  05:41 PM

I purchased the Zune after my two previous attempt at using the Zen.  I purchased the Zune on the presumption that it would interface better with my xbox and pc software.  The zune interface is horrbile and is not user friendly at all. (i hate the ipod interface as well, to compare) Your okay with zune as long as you use .wma or .wma for everything but i prefer the less intrusive drm free media formats, because i do not always get a chance to plug my zune into the computer 30 days to update my licenses. And hooray i can share music wirelessly with no one because i no else has one. Within the three years ive had one i just recently met one other person who has one! And have had to update firmware (had to) four times which takes a very long time, since. Unless they go on sale for 89 again my recommendation is to go with something else.

Posted by Phil Downs  on  02/13/09  at  01:01 PM

Our whole family switched from iPod to Zune (4 Zune devices) because of the “all-you-can-eat” “Zune pass” way to cost-effectively enjoy the entire zune music library.  Wish Apple had something close.

Posted by Michael  on  02/13/09  at  10:59 AM

Overall, the Zune is vastly superior to the iPod. It’s feature range is double that of the iPod and it’s cheaper. It’s just unfortunate that it uses Microsoft software, pricing mentality and marketing.

Posted by Lee  on  02/11/09  at  01:27 PM

The Zune would appear to be toast. It’s a ‘me too’ product with no advantages over the heavyweight incumbent (the iPod) that anyone really cares about.

Apparently, when the playing field is level and Microsoft cannot use their operating system or office software monopolies to leverage a product, they do not do well. The sole exception is the Xbox, but MS lost billions on that product over several years before it began to turn a profit.

I guess if the Zune gets ‘bailed out’ by MS’s considerable cash reserves, it too can solider on, but the larger question is, why bother? It doesn’t really bring anything significantly new to the table, and consumers are speaking with their wallets.

I would say that if MS really wants to compete with the iPod, they need to focus on user-experience and software, not hardware. MS needs to have something as elegant and user friendly as iTunes, before anything else. They don’t right now.


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