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  Microsoft 'may need a rethink' on Zune
Time: 14:06 EST/19:06 GMT | News Source: Financial Times | Posted By: Robert Stein

The mixed early reception for its Zune music player means Microsoft will have to make early tweaks if it is to stand any chance of rattling Apple's dominance of the digital music business, according to analysts. That should mean announcements early in the New Year of new versions of the player and more wireless facilities, they said.

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#1 By 23275 (68.17.42.38) at 12/1/2006 3:20:39 PM
His analysis is fundamentally flawed in two ways:

1) He's restricting his analysis to the technology itself - not how or why it is used, or exists, which by definition must, enhance human performance, or advance the human condition

2) He doesn't even consider applied technologies once the conditions of 1) are met - the application of any intelligence.

The Zune achieves both, because it provides the catalog owners a base of users for which there are incentives and rewards for marketing their products to others and an easy means for those they market to, to experience and then buy that which they like - Zune's flagging of shared music for easy purchase after the 3play/3day expiatory rules come into effect.

This process is far more significant than any physical device's initial limitations and so imaginative that even if Apple mimics it, which they most certainly will, they can at best be regarded as less imaginative copy cats for having done so. This will feed a growing "anti-iPod" sentiment that on one hand is driven by the ubiquity of the iPod and the lack of healthy relationships with the catalog owners on the other.

Combined, these factors provide Microsoft with enough time to act - not react and build on the Zune's native strengths. From where I sit, the iPod is the Apple IIe in the adolescence of the digital entertainment age. I'd look for a Zune SDK on MSDN by spring - screwing partners is not what Microsoft wants to do. it's the catalog and the software that matter. - from this perspective, DRM, as applied to "in-bound" and ZPL trans coded material is actually what will be among the key factors that end up making the Zune number 1. "We CAN support that" is what I expect many catalog managing execs had to say - reward people for sharing and drive sales for us...? The guys at Universal had to be all but doing back-handsprings.

#2 By 3653 (68.52.143.149) at 12/1/2006 3:57:58 PM
its all about aligning the interests of the content producers with those of micrsoft. and (if you are listning sodablue) aligning the interests of consumers with the interests of microsoft.

nothing motivates like a profit motive. NOTHING.

#3 By 7754 (216.160.8.41) at 12/1/2006 4:45:20 PM
I have to agree with the article. If the Zune had been introduced at the same time as the first iPod, I think it would easily have "won." As it stands now, it needs something more to compete with the iPod. Wireless sharing--as others have pointed out--means nothing if there's no one else out there with whom you can share content. It may be more favorable terms for content providers, but it only really means something to them if there are consumers out there to buy it.

The Zune is nifty and all... but I'm going to wait to see what else they have up their sleeve before I'll plunk down any money for one. Or, hopefully I'll win one at a conference.... :)

#4 By 3 (62.253.128.15) at 12/1/2006 5:34:15 PM
#3 - agree with you completly, it needs some extra oomph to push it into the ipod crowd. As you say, if it was out the same time as the ipod it would have been the main player, as it stands its just another device that people won't be all that interested in, don't get me wrong though, its not a bad player. But my example is always the Creative Zen Vision:M its a fantastic player, had good advertising (certainly here in the UK) yet it hasn't sold well, people still class an MP3/Music/Video player as an ipod when they talk, until you can change that, Zune will never be a number one.

#5 By 1913 (70.253.56.110) at 12/1/2006 10:38:07 PM
Microsoft just needed something out there for now, and as we all know the Zune will change in time.

The Zune design team is the XBox 360 design team, and they only had about a year to work on the product after the 360 was launched ...they decided to deal with the Toshiba Gigabeat for the time being to produce a product.

However, Microsoft do have ground to gain, and they need to work fast or the Zune will turn to one of their wi-fi products ...may they rest in peace.

This post was edited by rommels on Friday, December 01, 2006 at 22:39.

#6 By 3653 (68.52.143.149) at 12/2/2006 2:02:03 AM
rommel, i beta'd those wifi products (that no one else seems to even remember) and got to keep two of them. I still use one and love it. Of course, thats neither here nor there.

#7 By 3 (62.253.128.15) at 12/2/2006 4:32:12 AM
#6 - even more proof that sometimes better products just don't sell.

#8 By 17605 (24.18.169.204) at 12/2/2006 2:41:12 PM
Well...I just purchased a new Sansa 8GB player that I'm using with my URGE subscription. If the ZUNE had plays for sure and subscription support for URGE I more than likely would have purchased a ZUNE instead. I'm a Jazz fan and at this point, ZUNE marketplace is "jazz pathetic" while URGE is wonderful.

#9 By 17996 (66.235.19.95) at 12/2/2006 6:09:40 PM
The article quotes Gartner analyst McQuire as saying "Somewhere around version three, they [always] get it right. But I'm not sure they have that sort of time."

Of course Microsoft has that kind of time. Remember when they introduced Windows CE back in 1996? People laughed at CE-powered devices when comparing them to the dominant PalmPilot systems of the day. And now look at it: Windows Mobile (built on top of CE) is the dominant PDA OS; even Palm uses it for their Treo. And Windows Mobile continues to increase its presence in the phone OS market.

Personally, though I am a Microsoft fan, I won't buy a Zune until they make it compatible with PlaysForSure. I hate the fact that after the Windows Media folks at MS created this open architecture/initiative, and then the Xbox folks go off and introduce this player that isn't even compatible with that architecture. It looks really bad, and I won't support the Zune effort until its compatible. If it never is, I'll never support it.

#10 By 1913 (70.253.56.110) at 12/3/2006 11:13:31 PM
mooresa56 ...i know what you mean about the ms wifi products as it was very easy to configure, but ms was just to late in the game.

patriot ... it will take time, and i'm sure the ms is also dealing with the recording companies to bring more contents. It is just like the original xbox ...big but decent ...and the zune is big and decent ...let's just wait what happens on the next version.

#11 By 13030 (198.22.121.110) at 12/4/2006 10:33:58 AM
#2, Yeesh. Still sore about sodablue dunkin' ya?

#9, I think Windows Mobile succeeded less because of its merits and more because of Palm's incompetence. It's like winning a two car race because the other car broke down. From the consumer perspective, the snappy performance, usability, and overall sophistication of the Palm OS trounced the Pocket PC OS until recently. The problem was Palm's inability to get out timely OS releases and better support their developer community. Developing for the Palm was harder than for the Window CE devices. MS knew that supporting the devs would eventually lead to a more apps for their devices. (Also, while portable devices didn't really need tasking swapping, MS muddled through it, got it to work better, and eventually it became important to device reviewers.)
Sometimes, MS wins by not losing.

#6 and #7, Sad, but true.

#1, I agree that software will become a key factor in the race between these devices. Software will give the edge to MS if history tells us anything. A Zune MSDN SDK will seal the fate of any competitor that is slow to innovate.

#12 By 3653 (68.52.143.149) at 12/4/2006 12:04:33 PM
> Sometimes, MS wins by not losing

do you have any more nuggets from the "no shite" file? Here's the thing. Palm did what other msft competitors have done. they looked in the rear view mirror at the approaching competitor, and ran off the road. But in the land of business, that doesn't somehow strip the eventual winner from rights to the kill.

#13 By 23275 (68.17.42.38) at 12/4/2006 12:50:06 PM
#5, Microsoft's wi-fi products were a lot more about software than they were about hardware.

If you recall, at the time, the SOHO - with emphasis on the "HO" side, was exploding. Set up, management and device interfaces were a mess. XP SP1 had not shipped and unsecured access points were more common than not. It was a mess and worse, SDK's and API's for Windows wireless networking were either not used, or poorly used.

Microsoft shipped some simple, but effective devices that included improved API's - which they shipped to all vendors. They also improved Windows XP's wireless networking well ahead of XP SP2 and they evolved the device interfaces - including them in the SDK.

As such the entire industry - most especially SOHO consumers, benefitted and began installing much more capable, secure and easy to use devices and SOHO wireless networks.

MS has done the same in HID's, gaming devices and other technologies - like speech and speech products - all of which moved up a notch or two as they became both more common and less expensive.

This approach was offered as a clear design goal and mission objective - where doing this improved Windows and contributed to its continued success.

#14 By 13030 (198.22.121.110) at 12/4/2006 2:14:21 PM
#12: do you have any more nuggets from the "no shite" file?

Sure! How about this? Bitterness is a drink consumed in solitude.

But in the land of business, that doesn't somehow strip the eventual winner from rights to the kill.

Somehow it just feels less fulfilling. "Rights to the kill" should be earned, not defaulted.

A zealot can make any "victory" the ultimate achievement of brilliance, determination, innovation, and skill... even if it was because the other car just ran off the road.

#15 By 3653 (68.52.143.149) at 12/5/2006 4:18:46 PM
ch - "rights to the kill" = revenue and profit. and its not a bit less fulfilling when the competitor caused the once-mighty to run off the road out of nothing less than apprehension.

This post was edited by mooresa56 on Tuesday, December 05, 2006 at 16:19.

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