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  Microsoft's score against Apple: Zune $85 million, iPod $3.4 billion
Time: 09:16 EST/14:16 GMT | News Source: TechFlash | Posted By: Kenneth van Surksum

That's how much revenue each company's portable media platform pulled in last quarter, according to their respective financial reports. Is it any wonder why you don't see many people walking around with Microsoft's portable media player?

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#1 By 45754 (83.87.126.155) at 1/25/2009 9:17:40 AM
I know why i don't see people walking with a Zune media player. Because they don't sell them here (Netherlands)

#2 By 15406 (99.240.65.32) at 1/25/2009 10:36:01 AM
MS's revenue decreased by $100 million on the Zune for the quarter. That's down 54%, which is amazing considering that that includes the holiday spending orgy. I don't think you'll see the Zune around a year from now. Two, tops.

#3 By 23275 (24.196.4.141) at 1/25/2009 11:09:20 AM
#3, you will and you'll see the Zune/Zune Marketplace software on a very wide variety of devices. It'd be nice to see it in the iPhone apps store, too. (you won't see that one, because Apple won't allow it). It's great software.

One needn't have a Zune or a Zune pass to use it either. Check it out - unlike iTunes, it doesn't pepper a Windows machine with a bunch of garbage. It's lightweight, runs well and its "Mix View" is a really good example of "innovation" in software - it smokes iTunes' not so 'genius' discovery tool. Check it out at www.zune.net

#4 By 1896 (74.166.235.69) at 1/25/2009 12:36:42 PM
The day MS will allow the Zune to play in my BMW I will consider buying another one.... till then iPhone is the star. Wm 7 might be the one..... although I am not very optimistic....
And now this is my opinion about the future: within 3 years, and probaly sooner, Bill Gates will come back to rescue the company he created.

#5 By 2960 (72.196.201.130) at 1/26/2009 9:51:57 AM
Microsoft has proven in the past it has no patience for such things.

I look for the Zune to be gone within 6 months.

#6 By 28801 (65.90.202.10) at 1/26/2009 1:35:43 PM
Hey kids, what do you want for Christmas?

Do you want this Brick-like device that comes in ugly colors and no one else has. Or do you want this sleek, ipod that everyone uses?

#7 By 9589 (76.4.22.39) at 1/26/2009 2:58:50 PM
$85 million - that's about the quarterly revenue of Red Hat - by Latch's measure, I guess we won't see Red Hat around a year from now. Two, tops.

plunk . . .

#8 By 15406 (216.191.227.68) at 1/26/2009 3:50:24 PM
#7: by Latch's measure, I guess we won't see Red Hat around a year from now.

I'm sorry, did I miss the part where Red hat's revenue declined by 54% in a single quarter? Because, otherwise, your comparison would be stupid.

plunk . . .

Did you fall down again?

#9 By 23275 (172.16.10.31) at 1/27/2009 5:35:28 PM
Latch, Zune sales actually increased very substantively, IF you had been paying attention to the whole story... you'd know that several things happened on the Zune front that contributed to increased costs - opposite sales (so before we get into that and for young readers... Zune declined yes, but as a cost center... it had significantly higher costs... rad on for why).

Zune shipped an entire new line up of devices - it costs to design, test and fab new stuff
Zune shipped significant updates to the Zune software including:
Radio Tagging
Wireless Store Purchases
Games and a game studio SDK
Enhancements to the UI and purchasing experience
Mix View - to easily discover new music - click mix view and see related artists/songs
Channels
Picks - based upon what one and one's friends like
Social Integration
MS-DVR Native Support for recorded TV from MCE

These things have costs... and they debit from earnings.

Take note of the convergence out there in media and personal devices like phones and think where Windows Mobile is weak - media? Where is Zune so strong? Media! and Media ecosystem. I think we'll all like where this is headed.... now think car and sync and think "Home Groups" in Win7 and wireless sync... in simple terms... where is Zune and MS very strong? Software, Services on software and the ecosystem around them. Zune is in a very nice spot and frankly, so is Windows Mobile. I mean... which is easier to get... a mobile browser or a mobile ecosystem where it is easy to add to?

#10 By 28801 (65.90.202.10) at 1/27/2009 6:20:07 PM
#9: Go to your local high school and count how many Zunes you see. That's the only ecosystem that counts.

#11 By 23275 (24.196.4.141) at 1/27/2009 8:21:30 PM
#10, My high school didn't have running water.

don't focus on the device.

don't focus on "now"

Do focus on what you want to be. If Windows and the effort behind it had not persisted for 10 years - as a dismal failure... where would it be? Persistence and never giving up. That is the answer that matters.

#12 By 15406 (216.191.227.68) at 1/28/2009 9:56:07 AM
#9: No matter how you contort yourself in your spin efforts, you cannot explain away a $100 million drop in revenue in an Xmas quarter. Unless they're paying people to take a Zune (or doing an XBox and taking a $100 loss on every sale), your argument doesn't make a lot of sense.

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