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Microsoft matches iPod, iTunes pricing

updated 09:40 am EDT, Thu September 28, 2006

Microsoft matches pricing

Microsoft on Thursday said its forthcoming Zune music player will sell for $249.99 and that songs from its own music service will sell for $0.99, matching the price of Apple's 30GB iPod and iTunes' songs. Because of the aggressive pricing by Apple, the company says it will lose money on its Zune player this holiday season. Microsoft said it needed to put a comparable price on Zune--which launches November 14--even if it meant that the company will suffer a loss from the device's sales this holiday season, according to Reuters: "We had to look at what was in the market and offer a competitive price," said Scott Erickson, Microsoft's senior director of product marketing for Zune. "We're not going to be profitable this holiday but the Zune project is a multiyear strategy." Microsoft has said it plans to invest hundreds of millions of dollars to develop and market the Zune--which bundles a few more features than Apple's iPod, including FM radio and wireless connectivity between players to beam photos and music. In addition, the company acknowledged the investment "may take years to bear fruit."




by MacNN Staff

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Comments

  1. zerostar

    Joined: Dec 1969

    0

    Warranty?

    What will the warranty be like, I think with a 3-year warranty (hey they are willing to loose money anyway) they can seriously hurt the iPod.

    Anyone who has shelled out almost $400 for an iPod to have it break in 16-18 months will certainly look at the zune if it has a longer warranty, plus it doesn't look all that bad either!

  1. scrod008

    Joined: Dec 1969

    0

    Warranty?

    Who cares about the warranty, do you really think that will make a difference to people? People aren't going to buy this piece of c*** when they can buy the best in the market for the same price, especially when the iPod is as established as it is.

  1. zerostar

    Joined: Dec 1969

    0

    yeah I do

    I think that is important to a lot of people, I know it is to me, but I'm not buying a zune unless it is a good performer, widely used and is far more supported on the mac.

    And don't forget your comments can be applied to the Xbox vs. the Playstation just as easily, MS has tons of money and can dominate a field if they play their cards right.

  1. e2Sync

    Joined: Dec 1969

    0

    is this car zune ready?

    moon ready? no, zune, you know, microsoft zune! ahh, is that some sort of music player? Yes! No.

  1. mosespatrader

    Joined: Dec 1969

    0

    Profitable?

    I find it funny that Microsoft can't even be profitable on a device that is based off a Toshiba device.

    The iPod has been profitable from day 1!

  1. jarod

    Joined: Dec 1969

    0

    As I've said before

    I don't see what the excitement is. There are TONs of iPod competitors (or so called ipod killers) that destroy this piece of s*** from Microsoft and yet they have barely sold anything. People are giving this zune more credit than it's worth. It's no iPod, will never be an iPod, and will always be a cheap, defective, piece of c*** synonymous to Microsoft's reputed level of quality. You have to be really really really stupid to buy something like this (a repackaged OLD product).

  1. milhouse

    Joined: Dec 1969

    0

    PC users?

    I think they will initially sway some existing PC based iPod users as well as current non-iPod PC users who aren't parital to Apple. If the product is stellar, the'll gain inroads. If not, it will be an expensive also-ran.

    Is Zune Mac compatible? If not, they won't hurt the Mac-wielding Ipodder base.

  1. bfalchuk

    Joined: Dec 1969

    0

    I disagree

    I can't see buying a Zune even if my iPod broke. I'd just buy a new iPod.

    Many players have come to challenege the iPod with more features, and they all failed, including the Gigabeat, on which the Zune is based.

    I will admit, there are some nice ideas in the Zune, like being able to send your library via wi-fi. However, it all depends on MS selling enough Zunes that the feature becomes relevant. Your friends really must have Zunes for it to make any difference. And the battery life will be worthless if you're using the feature. Between the wireless and the HD spinning, you'll be using more battery than driving video, probably.

    Good idea, but it just won't be relevant, and without that feature, the Zune is just another challenger that won't make it.

  1. kerryb

    Joined: Dec 1969

    0

    Zune vs share holders

    M$ may have tons of money but they also have stock holders. How many "long term" money losing plans can M$ try until people ask them to create a new market instead of trying to smother competition with endless resources?

  1. exca1ibur

    Joined: Dec 1969

    0

    No Mac compatibility

    The Zune is NOT Mac compatible and neither is their music store. So its not an option for a Mac user either way.

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