digital music/video
09/28/2006, 9:40am, EDT
Thursday, September 28th
Microsoft matches iPod, iTunes 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."
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Other story tags: digital music/video
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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!
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.
The iPod has been profitable from day 1!
Is Zune Mac compatible? If not, they won't hurt the Mac-wielding Ipodder base.
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.