"In an event at the building that houses Microsoft's Zune team, Chairman Bill Gates said the company is committed to the music-player category and reminded attendees that it took Microsoft time to become a serious competitor in many other areas, including word processing, spreadsheets and graphical user interfaces. "We think the same kind of things in terms of persistence and innovation can apply in this connected entertainment area," said Mr. Gates." (per the Wall Street Journal)
Microsoft Corporate Vice President, J Allard, and Chairman, Bill Gates, unveil the newest Zune media players in Redmond yesterday.
With sales of 1.2 million Zune, Microsoft holds about 10% of the 30GB MP3 player market. This translates into a 3% market share of the MP3 player market vs Apple's 72%.
Microsoft new lineup include an 80GB hard disk based device, as well as 4 and 8GB flash based devices priced identically to the comparable Apple iPod models. The two innovations in the new Zunes are the ability to perform wireless synchronization over WiFi and a touch control which will respond to finger flicks. Apparently, Microsoft has engineered this version of the Zune from the ground up, rather than rely on Toshiba's original Zune design. They have also revamped the Zune marketplace software and is better integrated with Media Center to enable the synchronization of recorded video content. In contrast to Apple's strategy of not providing previous generation iPods with current generation firmware, Microsoft will provide new Zune software features for the 1st generation Zunes.
Although not revolutionary, it shows that Microsoft is serious about staying in the game. However this looks to be a long game...
Apple TV’s Lackluster Sales may be the Crack in the iPod Armor Zune HD Needs
With the official announcement of Zune HD, Microsoft may have the opportunity to crack the iPod's armor. Not that I think the Zune HD will be so wonderful, but because Microsoft currently owns the digital living room's eco system. Microsoft's foray and success into the gaming world, with the Xbox, gave them an opportunity to capitalize with a device designed to be connected to the internet and the TV. To Microsoft's credit they are capitalizing on this functionality with the ability to purchase music and videos, stream from NetFlix's online library (1 million Xbox subscribers), and access one's own media center content. Xbox 360 has accidentally turned into the living room media device Microsoft has been talking about forever and according to Silicon Alley Insider is "kicking Apple's butt".
What made the iPod, what it is today was not that it was revolutionary device (there were plenty of MP3 devices around), but the integration with iTunes. Although the iTunes application is not that great (still no multi user functionality), it made the process of purchasing and synchronizing your music with the iPod child's play. That simplicity was a key factor in popularizing the iPod. The same can be said about the X360 marketplace, it simplified the process of purchasing and renting HD content. In addition to its primary mission as a world class gaming console, the integration with Media Center allows the Xbox 360 to be the bridge between content stored on a PC and the TV. The Zune HD will be able to take advantage of this functionality to seamlessly integrate into the Xbox 360 eco system.
If you currently own an Xbox 360 and an iPod, the Zune HD maybe the next device in line, especially when you can convert the DRM free iTunes Plus content. I think the two remaining items Microsoft needs to do to insure the Zune HD's a viable Touch competitor is Xbox gaming as well as Windows Mobile application support. And, of course phone integration.
Posted by sskarlatos on May 28, 2009 at 09:04 AM in Apple, Commentary, Microsoft, NETFLIX, Zune | Permalink | Comments (1) | TrackBack (0)
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