Microsoft Zune Team Launches Latest Exercise in Futility
by John Paczkowski
Posted on September 15, 2009 at 11:04 AM PT
Microsoft brought it’s not-so-anxiously-awaited Zune HD to market today. With its touchscreen, Wi-Fi capability and high-definition video output, the device is intended as an answer to the iPod touch, though it lacks the application marketplace that helped make Apple’s device so popular.
And it’s not going to be getting one anytime soon, either, despite rumors that Microsoft is working on one and courting developers to port their iPhone apps over to it. Which is not to say that the company isn’t building an answer to Apple’s App Store–it is. Redmond is just building it for Windows Mobile, not Zune.
“We’re trying to get out of the business of building similar things in the company that don’t work together, and the Windows Mobile team is tackling the challenge of a mobile apps marketplace right now,” Zune marketing manager Brian Seitz told TechFlash. “We don’t necessarily line up perfectly with that, to take advantage of whatever ends up coming out of that from the Zune HD standpoint, but down the line if there’s a way that we can plug into what they’re doing, I’m sure we’ll look into whether that makes sense for the business.”
But by then, of course, it will be too late. Arguably, it’s too late already. As Apple gleefully noted during its annual music event last week, NPD pegs the company’s share of the portable media device market at nearly 74 percent. Meanwhile, Microsoft’s tops out at an estimated 1.1 percent.
Raising that share was already a Sisyphean task for Microsoft (MSFT), and it has only become more difficult now that Apple (AAPL) has introduced not just a new iPod nano with a built-in video camera and FM radio, but also a more inexpensive iPod touch.
Microsoft is pricing the 16GB Zune HD at $219.99 and the 32GB version at $289.99. But you can get a 32GB iPod touch for $299. And you can get an 8GB touch for $199. Now, granted, the touch offers only half the storage of the 16GB Zune HD, but it supports the iTunes App Store. And if you really want that extra 8GB, you can always buy an iPod nano, which shoots video and at $179.00, is $30 cheaper than the Zune HD.
Comments
“of course, it will be too late. Arguably, it’s too late already. As Apple gleefully noted.”
If Apple has become complacent enough to make such a comment, your quote is bullish for Microsoft. Microsoft stopped thinking like that years ago.
Posted by josh thompson at September 15th, 2009 at 11:34 amI made that comment, not Apple.
Posted by John Paczkowski at September 15th, 2009 at 12:12 pmHi John. Respectfully, it seems that you have such a bias against the Zune that you have not thought through the news release. There is a fundamental difference in how Zune licenses its music, and frankly I like the flexibility. $15 for all you can eat is pretty darn good. Secondly connecting to the XBOX Live marketplace could give Zune quite a boost. Apple TV does not compare well against the XBOX. Thirdly, games will be available through the Zune marketplace, which implies that apps may make it there as well (how else are they going to distribute the new Facebook app?). It will not be at first as diverse as Apple Store, but better than how you described it. You also skipped HD Radio and HD (720p) TV output! That is impressive for such a small device. Then think that for $15 per month I get all the music I bought from Apple and never again worry about backing it up and can access it anytime anywhere on PC, XBOX, or Zune… switching costs are all of a sudden plummeting. I do think that adding a camera to iPod nano was brilliant. I would not write MS off. Let’s see what Walt has to say after he tests it.
Posted by Tomasz Wojewoda at September 15th, 2009 at 12:38 pm> Respectfully, it seems that you have
> such a bias against the Zune
You don’t have to have an anti-Zune bias to dislike the Zune.
The Zune is so unpopular that Microsoft just killed off the entire product line in favor of a clone of the 2007 iPod touch.
It’s up to people who have a pro-Zune bias to explain themselves, not the other way around.
> There is a fundamental
> difference in how Zune
> licenses its music, and
> frankly I like the
> flexibility.
What you call flexibility requires you to play your music only on a Microsoft device. There are thousands of brands of standard audio player today. People have GPU units that have music players in them and they all play ISO MPEG-4. The flexibility of standard audio that you can take with you to any device won out in the market by far. That is why you are in the 1% part of the pie, years after the Zune introduced its subscription model, which incidentally happened years after Apple introduced their rip, mix, burn and iTunes Store combination.
If you want a subscription music service, there are many of them available as apps for the iPod touch. You don’t have to give up a great local music library and apps to get subscription music.
> Secondly connecting to the XBOX Live
> marketplace could give Zune quite a boost.
There are orders of magnitude more iTunes users than XBox users, and there are even more iPod touch devices in the world than XBox devices.
> games will be available through the Zune
> marketplace, which implies that apps
> may make it there as well (how else are they
> going to distribute the new Facebook app?).
They have already said that this will not be open to 3rd party developers. All of the Zune HD apps will be from Microsoft. The fact that they’re not currently shipping on the device is not a feature, that is a bug. The fact you can download them later is not a feature, because you’re not going to be shopping in a market of thousands of apps, choosing the one that suits you best from a field of choices, you’re just going to be downloading whatever Facebook app Microsoft makes. It should already be on Zune HD. It’s just missing from your Zune HD, it’s not a 3rd party app platform.
> You also skipped HD Radio
The HD does not stand for High Definition when it comes to the Zune radio.
> and HD (720p) TV output! That is impressive
> for such a small device.
The Zune HD output only works with the HD dock. It’s not small after the two are put together.
Downloadable movies are compressed significantly to go over the wire. Side by side the Zune HD and iPod touch provide essentially the same external TV experience. You can fit more movies on the iPod though, and also see them at much better quality on the built-in screen. The Zune HD screen has 20% fewer pixels and no backlight, it is not nearly as good as the display in the iPod touch.
> Then think that for $15 per month I get
> all the music I bought from Apple and
> never again worry about backing it up
> and can access it anytime anywhere
> on PC, XBOX, or Zune
There are apps on the iPod touch that give you this feature. This is just one feature of iPod touch.
Playing music in the “iPod” app on iPod touch is only one way to enjoy music on there. There are many, many streaming radio apps, some with interactive features. There is a Rhapsody app. There is a big European music service that has an app. And (quite significantly) there are music-making apps on iPod touch. There is a full music sequencer and a great little 4-track recorder and many more great music tools. I have many of these on my iPhone they are great and cost hardly anything to buy, came fully tested, and installed themselves.
So you have to be careful of comparing the Zune music features to iPod 2001 (rip mix burn) or iPod 2002 (iTunes Store.) We’ve come a long way since then. You can still import your CD’s and you can still buy downloadable tracks, but you can do all the other stuff, too, including making music.
> switching costs are all of a sudden
> plummeting
Switching is a Microsoft-specific term. You only have to switch when you leave Microsoft because they apply vendor lock-in. Outside of Microsoft there is no switching in music players. Digital music is all DRM-free and it’s all published in ISO MPEG-4 which is supported in the hardware of every music player, even the Zune HD.
What you have going on from the outside of Microsoft going in is the Zune HD cannot compete with the iPod touch, so an iPod touch user can’t choose to use a Zune because they simply lose too many features. That’s not switching or vendor lock-in that’s just Apple out-competing Microsoft.
Posted by Fred Hamranhansenhansen at September 15th, 2009 at 4:21 pmBut I really don’t like iTunes! Maybe I’m different than most. I have enjoyed my iPod Nano, but I really don’t like iTunes. It would be nice if devices were not tied to vendor specific interfaces, but they are, so that forces polarization.
Posted by Charles Laws at September 16th, 2009 at 5:31 am