As new iPods loom, Zune gets price cut

With Apple widely expected to introduce new iPods later Wednesday, Microsoft has cut the price of the Zune player by $50, dropping it to $199.

Microsoft announced the cut Tuesday on its ZuneInsider Web site, saying the move was part of a longstanding plan. The price cut, however, does coincide with an Apple press event where the company is expected to announce new models of its market-dominating iPod.

"It's part of the normal product life cycle, something we've had on the books for months," Microsoft's Cesar Menendez said in a blog posting. "We just got some research back and customer satisfaction with the 30GB device is really high (around 94 percent), and we expect even more consumers will now want to discover the Zune experience at the new lower price."

The Zune, which went on sale in November, has grabbed 9 percent to 10 percent of the U.S. retail market for hard-drive-based MP3 players in recent months, according to market researcher NPD. Microsoft said it shipped 1.2 million Zunes through June, the end of its fiscal year, exceeding a goal of 1 million shipments.

Although Microsoft is now making an official price cut, the Zune could often be found for well below the $249 suggested price.

[Penguinisto]

Try Harder.

...and while you're at it, lose the DRM requirement, the proprietary WMA-only format, and the Windows-only requirement.

Then maybe, just maybe, Zune wouldn't be such a gawdawful last-place flop of a product.

/P

[rcrusoe]

Lost cause

"Then maybe, just maybe, Zune wouldn't be such a gawdawful last-place flop of a product."

Yes it would.

[ittesi259]

The Zune isn't that bad

Sure its made by MS which gives negativity to start with, but do you really think the iPod would work with Windows if Apple had the OS Marketshare of Windows? It plays music and video...and does it well, so I don't know what flop of a product you mean. If you base it on unit sales the timing of it sucked, but its not a bad player.

[aka_tripleB]

It's no different than the iPod

With the iPod you're stuck with Apple's media formats. And the Zune also does support AAC and MP3. It's more open than you give it credit for.

[Xenu7-214951314497503184010868]

Pay us instead

I'll get a Zune, but only if they pay me to use it.

[rcardona2k]

Learn from Palm

Maybe Microsoft could partner with Palm on lessons on innovation learned. No wait, nevermind.

[justageek]

Try QVC for Christmas

Only the very un-informed would buy a Zune. Microsoft's only
hope with this is QVC where grandparents can buy them for their
grandkids. Would be a disappointing to them as a package of
socks.

[ua_eng]

Uninformed. No hyphen.

Well, I guess I'm uninformed now.

It's not like I know the contents of my hard drive and can objectively decide which formats I need my media player to play (or at least have most of my formats supported).

So tell me, which mp3 players do the informed, such as yourself, choose?

Creative? Archos? Apple? Sony? Sandisk?

Please. I'm eager to learn.

[technewsjunkie]

They can't give hardware away, like free software, to hook You

It's a different ballgame for Microsoft who is used to giving away
software for free to undercut competitors (usually the ones who
invented it)

[Sumatra-Bosch]

Consumers Woudln't Want Zune - Even For Free !

Research shows the only buyers of Zunes are confused grandparents and mental hospital escapees. The average consumer couldn't be paid to take a Zune. Likely, that is the next step. Ballmer will give you $20 bucks in MS music marketplace bucks just to take one. After that, he'll just have to run around department stores throwing chairs and biting people on the face.