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Zune price dropped to $200 ahead of Apple event

updated 02:40 am EDT, Wed September 5, 2007

Zune price dropped to $200

One day before Apple is expected to introduce new iPods at a special event in San Francisco ("The Beat Goes On"), Microsoft has announced that it is dropping the price of the 30GB Zune music player to $200. A posting to Microsoft's Zune Insider blog reads "Some of you may have already heard, but tomorrow we're dropping the suggested retail price for Zune to $199.  It's part of the normal product lifecycle, something we've had on the books for months. We just got some research back and customer satisfaction with the 30GB device is really high (around 94%) and we expect even more consumers will now want to discover the Zune experience at the new lower price."

The price drop comes shortly after Mindy Mount, the corporate vice president and CFO of Microsoft's entertainment and device division, said that she grades the Zune a "B-" in its current state, noting that the player is doing well, saleswise, for "a product out in less than a year and a half," but that the company is still developing the brand and trying to expand its identity

Multiple sources claim that Apple's "Beat Goes On" event should mark a radical departure from the company's traditional line, claim multiple sources inside Taiwan electronics suppliers. The contacts allege that a premium iPod to be announced on September 5th will include a large touchscreen similar to that of the iPhone and will also include Wi-Fi for networking features while swapping the hard disk for "high storage capacity" NAND flash memory, the sources said.

by MacNN Staff




  1. HombrePhaty

    Joined: Dec 1969



    I guess business is war, but Microsoft is sure annoying... almost everything about them: their products, their executives, their business strategies.

  1. Durandalus

    Joined: Dec 1969



    Wait, when they question the single person who has bought a Zune (Steve Ballmer), how can they arrive at 94% customer satisfaction? Should be 0% or 100%.

  1. ViktorCode

    Joined: Dec 1969


    94%? doubt it

    What kind of customer will be satisfied with a device with features that just don't work? Anyway, this price drop is a good move, Apple need someone to keep iPod price in check.

  1. jarod

    Joined: Dec 1969



    $200??? I think there's 2 extra zeroes there and a missing decimal point on the left. No wait... thats still too much for a piece of s*** from Microdump. I mean seriosly, what kind of bloody idiot buys this trash? Are people blind or simply genetically born idiots?

  1. mgpalma

    Joined: Dec 1969


    re: Are people blind or..

    I know a few people who bought this thing because it was NOT an Apple product and it WAS a MS product. Really. I am not kidding. Sad, I know...

  1. dynsight

    Joined: Dec 1969


    Making LESS money

    Not sure how the shareholders should take this. The MS entertainment unit has been bleeding green for a while, this is not going to help much (unless the new Zune player is completely revolutionary and exciting).

    It's not that the Zune is bad, it really isn't. If there were no iPod, it would be a pretty cool device. It is just Microsoft's approach that is really, eventually, a problem.

    They try to take a successful market (games, network equipment, music players, browsers...) and then buy their way into it. Hey the Xbox 360 is a great device, BUT it has yet to turn a profit for MS.

    And adding the Zune to the discount bin isn't going to help. People not only have iPods, they have iPod speakers, cables, docking stations in their car, etc. They're not going to give all that up.

    MS was smart and got out of the networking hardware business very quickly. Maybe the same person who made that decision needs to really look hard at the Zune.

    Just my too sense (sic.).

  1. elroth

    Joined: Dec 1969


    ms bs

    Remember when the Zune was first announced - it was $299. Then Apple came out with the 5G iPods (30GB) at $249, and Microsoft had to immediately lower the Zune price to match.

    Now MS is trying to steal some publicity from today's iPod event - good luck MS. Maybe they anticipate Apple lowering the price, and want to say "we did it first."

  1. Herod

    Joined: Dec 1969


    Oh neato!

    can we get the cool halo version at this discounted price too???

  1. Paul Huang

    Joined: Dec 1969


    Fire Sale

    Big Lots! or K-Mart trying to steal business from Saks Fifth or Neiman Marcus.

  1. lamewing

    Joined: Dec 1969


    Zune is nice, but...

    I owned a Zune for about six months and actually liked the hardware quite a bit. Everything about the hardware is nice quality, except for the control pad which is a bit wobbly. BUT, even the touch wheel on iPods is wobbly.

    Having said that, I sold my Zune because their software is only so-so and more importantly, the Zune cannot display kana, kanji, or hangul. That was a deal breaker.

    I almost bought a Cowon product (very nice equipment), but I am holding out til this afternoon to see what Apple is putting out. If it is a nice touchscreen-based unit (wifi is a bonus) then I will break down and get it instead.

    If Microsoft were to try and do their own thing without copying Apple (much less competing to overthrow) they could gain a nice little niche and all would be well...but the big words they throw out just make them look like idiots when they (in the end) cannot take Apple down.

    The only company that will take Apple out of the race is...well, Apple. Look at Sony. They were the "big dogs" on the blog, but their hubris caught up to them. I hope Apple can avoid this for quite some time.

    Until this afternoon...

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