September 6, 2007 10:00 AM PDT

Microsoft on new iPods: What, me worry?

by Ina Fried
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"It is another good day for Microsoft."

Microsoft spokesman Mark Murray famously used that line seven years ago, briefing reporters at the company's landmark antitrust trial, right after the software giant took a beating in court.

The Zune folks didn't use that specific wording, but they did try to shrug off the latest crop of iPods.

"This may come as a shock to folks, but today's Apple Computer announcement doesn't actually change any of our plans," Zune unit blogger Cesar Menendez said in a blog posting on Wednesday. "Of course we watched with some degree of interest but our plans have been in motion for some time now."

It's not entirely clear what those plans are, however. The software maker came out with the original 30GB Zune last November. The company is widely expected to come out with follow-up devices for this holiday season, with the consensus expectations calling for a flash player and an update to its existing hard drive-based product.

Microsoft offered no new details Wednesday, with Menendez saying simply, "No announcements to make other than the fact that the Zune team remains committed to building a solid experience for users."

One thing is for sure. It's going to take a lot more than a $50 price cut or this for Microsoft to catch up to Apple.

Apple significantly raised the bar yesterday. While Microsoft already had Wi-Fi in its device, the usefulness of that has been severely limited. The only thing the technology could be used for was to send songs to a nearby Zune, an intriguing idea, but far less powerful than what Steve Jobs showed off on Wednesday.

Microsoft has been careful all along to say it expected a long, expensive, uphill climb in this market. The thing that makes it so tough for competitors is that Apple has shown itself willing and capable of taking its market-leading products, turning them on their head, and making them even better.

The company did so a couple years back when it introduced the iPod Nano to replace the iPod Mini, its best-selling product at the time. And it appears to have done so again, replacing the Nano with a video version and the video iPod with the iPod Touch.

That said, students of Microsoft history know it's a bad idea to count Redmond out. Once it enters a market, the software giant rarely retreats. It tries and tries again.

During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina.
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Add a Comment (Log in or register) Showing 1 of 2 pages (46 Comments)
So keep trying, MS...
by badasscat September 6, 2007 10:49 AM PDT
The Zune was a generation behind when it was first released and now it's two generations behind after Apple's announcement. It's bulky, it's (currently) hard drive only, it's got crippled wi-fi, it tops out at 30GB. Even if MS refreshes the line as expected, they'll still be at least a generation behind. They're not catching up.

Apple right now has something for everyone in the lineup, except maybe those who only want a small music player with a screen (like the just-replaced nano). That's a niche that MS could fill if they came out with a tiny player like the old nano - the "nano fat" is clearly Apple's weakest product right now. Otherwise, though, how is MS going to compete with 160GB in a player the iPod Classic's size, and at that price? How are they going to compete with the huge touch-screen on the Touch? *Maybe* they could undercut the shuffle, really replace the old nano and grab some of the extreme low end, but the high end and everything in between is all Apple's and will be for years to come.
Reply to this comment
MS Zune is a dead end
by oxtail01 September 6, 2007 11:26 AM PDT
There's no reason for this article unless the author got paid by MS to push a product that NO discerning consumer should buy!
I agree
by Seaspray0 September 6, 2007 4:11 PM PDT
I'm not a fan of their computers, but they do make a good MP3 player. I agree that they will hold the majority of the market for years to come. They've developed a brand name with good recognition for a good product and that alone will carry them for years to come in the MP3 player market.
Its an all uphill battle for sure for MS!
by pilaa September 6, 2007 7:20 PM PDT
It usually takes Microsoft till version 3 to get things rolling but in this case I would just have to say "cut your losses" already. Apple clearly has the "WOW" factor and industrial design expertise in the consumer electronics space now. Their momentum just keeps building and nobody, not even Sony, can catch up. The Zune (what a weird name for a device!) started out nice on paper but involved too much thinking inside rather than outside the box. Microsoft needs to think like a leader and not like a "me too" company.
Enhanced Squirt
by sanjayb September 6, 2007 11:03 AM PDT
Maybe MS can enhance the squirting ability of the Zune?? :-P
Reply to this comment
hey squirt THAT way, please
by rcardona2k September 6, 2007 9:19 PM PDT
Who does Microsoft pay for marketing???
flamebait :)
by ulric2 September 6, 2007 11:13 AM PDT
Where can I report this blog post as flamebait? :)

Seriously, instead of enjoying the iPod you turn to MS and go 'ha ha' for having a product that is one year old...
the real question is about the OTHER MP3 and portable multi-media players like ARCHOS.

You do know that the Zune is in the market of the iPod Classic, only, right? :)
Reply to this comment
there are other mp3 players?
by smithjones September 6, 2007 11:38 AM PDT
wow, didn't know there were also rans..., uh other than MS. ; )
View reply
Gates is wasting his time with Zune.
by sellitman September 6, 2007 11:43 AM PDT
He shouldn't have even tried. Apple has left him little room for marketing a better unit. With the "Touch" he his in Job's rear view mirror for years to come.
Reply to this comment
i bet that
by TinyIoda September 6, 2007 12:31 PM PDT
i bet thats what sony thought too.......
View reply
Why not GIVE it away...
by pugster September 6, 2007 11:58 AM PDT
I recall a few years back I brought a student version of Visual Studio and got Windows NT workstation OS for free.

I'm surprised that Microsoft didn't use its cheesy tactics like giving the Zune when you buy Vista Ultimate or Office 2007. That way they force Vista and Zune on people at the same time.
Reply to this comment
adding insult to injury
by KonradK September 6, 2007 12:05 PM PDT
> force Vista and Zune on people at the same time

Now that is truly offensive ;-) In addition to reporting the parent
blog as offensive, I should report your post for piling on. :-)
Zune? What the hell is that?
by bobby_brady September 6, 2007 12:11 PM PDT
Oh, that's right, Microsoft is still alive but barely. I take it they still make mediocre software?
Reply to this comment
A Zune???
by coryschulz September 6, 2007 12:46 PM PDT
I don't know what it is... it sounds like a type of bird... or maybe a cow like animal... or an insect. Either way, I'm pretty sure it's a rare find in the wild and is probably almost extinct. From my understanding it's highly unevolved and has really ugly colors.
Can I play Plays For Sure on Zune?
by bobby_brady September 6, 2007 12:13 PM PDT
No. The wifi connection, is only for DRM infested files, so that is a useless feature.
Reply to this comment
The article is not biased
by jakoye September 6, 2007 12:16 PM PDT
It clearly makes fun of Microsoft several times. If you can't see that, then your reading comprehension skills must be quite poor.

There is no question that Microsoft is far behind Apple in this space. And it's not surprising that Microsoft's "me too" product doesn't measure up to the IPod. But the article brings up the valid point that Microsoft is a rabid competitor and will keep trying. If you don't already know this, then you don't know much about the computer industry.

I personally doubt that Microsoft will "catch up" anytime soon unless they start innovating in this space rather than just copying. The WiFi-enabled music player was a good idea, but the execution was very poor. Being able to get your tunes through WiFi connnections should have been standard for the Zune. The fact that Apple has now claimed this space for its own shows that they're not sitting on their laurels and should be the king of this space for the next few years.

But Sony was the king of the home game console market until Microsoft decided to join the party, so Apple, as I'm sure they well know, will have to keep on their toes. All it means is more competition and better/cheaper products for us.
Reply to this comment
sarcasm ;-)
by KonradK September 6, 2007 12:26 PM PDT
> It clearly makes fun of Microsoft several times.
> If you can't see that, then your reading comprehension skills
must be quite poor.

I believe that everyone sees quite clearly how pathetic Microsoft
has become, not only with Zune, but also with Vista.

> I personally doubt that Microsoft will "catch up" anytime soon

exactly

> unless they start innovating in this space rather than just
copying

their recent history does not inspire confidence

> All it means is more competition and better/cheaper products
for us.

Amen to that!
And the gap grows ever wider after today...
by ppgreat September 6, 2007 1:04 PM PDT
I have posted comments on Steve's open letter to those outraged
by the $200 price drop on the iPhone at:

www.stonethemba.com

Tell me this guy isn't a masterful marketer.
Reply to this comment
Oops
by ppgreat September 6, 2007 1:05 PM PDT
Make that:

www.stonethembas.com
Good to see competition...
by EirenO September 6, 2007 3:30 PM PDT
It's good that MS isn't going to abandon Zune, as (I'm sure I'll upset the fanboyz) whilst the Apple iPods are great units, for some folks their technical limitations are a put off. Format limitation and DRM forwards and back are no fun.

If Microsoft wanted to do some aggressive work here however, why don't they just buy Creative? Their players are better than both technically and with the MS do$h behind it, Apple might finally have a real challenge.

That said, the iPod touch is very smart and far more sensible an application of the interface than the phone IMHO.

Zune ain't it, but good to see they're not giving up (as if they would!)
Reply to this comment
The ZUNE is nothing but a Toshiba Gigabeat.
by ServedUp September 6, 2007 3:38 PM PDT
Microsoft doesn't even own the hardware patents for the ZUNE.
Its owned by Toshiba including the WIFI CONnectivity. Microsoft
is not a HARDWARE company like most of you have been fooled
to think and its obvious they can't compete for atleast the next
TWO YEARS or more, until they atleast bring out something
completely genuine from their R&D labs (which is obviously a
complete joke).

The only thing thats "ZUNE" about the device is the software and
even Apple has leap frogged them there by a light years with the
new UI on the click-wheel iPods and you can just FORGET about
MS competing against the iPod Touch thats a NO CONTEST.

But until then, I guess TOSHIBA will be innovating the hardware
device you know as the "ZUNE" and who knows if they even have
anything that matches Apple's offering. My guess is "NO" since a
lot of manufacturers are still stuck in creating generic devices
with a generic OS with a generic user experience.

Like Windows Vista, the ZUNE and Microsoft's supposedly great
future in dominating digital media can't be further from the
truth, now. Its even further out of reach then before.

VAPORWARE is the best word to describe whats coming out of
Redmond these days which sadly is becoming a testament to a
company that has definitely fallen behind the times.
Reply to this comment
Apple ... doesn't actually change any of our plans
by rcrusoe September 6, 2007 3:47 PM PDT
As long as Microsoft is saying that they never expected to sell any Zunes, that statement is probably correct.

However if they were hoping to lure buyers away from the iPod, IMO, they are severely deluded.
Reply to this comment
I don't see Zune dead just yet
by Seaspray0 September 6, 2007 4:04 PM PDT
Discounting ipod, it's doing well against the other MP3 player makers (I heard it was the #2 spot behind ipod). That actually surprised me. What's their market share? Only a couple of percent? Hmmmm.... That sounds like another company's share in the computer market and they are not dead yet as predicted by Dell. Apple cult fanatics should remember the market share held by apple computers versus windows computers is not so different from the market share being held by the zune versus ipod.... and apple isn't dead, is it? Also, given Microsoft's prepensity to not just back down after their first offering into a new market, I'd say the Zune will be around for awhile... with major revisions, but alive.

Maybe it's not your perspective, but that's how it see it.
Reply to this comment
Except..
by ServedUp September 6, 2007 10:58 PM PDT
This is Digital Music were talking about and NOT computer
operating systems. This is practically new territory with which
you are making your comparisons with, and you disregarded the
fact that theirs a whole set of different players, plus these
companies are just a totally different dynamic altogether.

Microsoft is clearly on the low ground when it comes to
innovation. Its a proven fact. Apple fans know this more than
most of Microsoft's fans are willing to admit (and this population
of users usually consists of PC hobbyist, gamers who happen to
be in the IT field). But aside from that, even the average
Windows PC user (which probably consists of half their users)
who really can't pick a side in the ongoing Mac vs. PC debate
even know that Microsoft doesn't come out with first gen
products unless they've seen them perform well by other
companies which by then they have already come up with a
competing prototype. Case in point Windows, XBOX, Internet
Search and now the Zune.

But your clearly thinking this is the Apple that let Microsoft take
the OS market. But you couldn't be more wrong.

This is Steve Job's Apple and not John Sculley's or Gil Amelio's
Apple. All the while during these former CEO's tenure Steve Jobs
was looking on the outside in with his observations of the
company he left behind, and of course didn't like what he saw.

Apple as a whole has learned their lesson from Microsoft's
propensity to takeover markets that they create. Case in point
the neverending Apple patents, the fact that the company is no
longer an open book when discussing new technologies or
breakthroughs the list goes on and on.

You can say the Zune might have a chance but I also believe
thats just absurd, more so than Apple's chances of trying to
catch MS in the OS race. Why? Its all based on the iPod device
economy. If Apple in a blue moon somehow manages to let MS
concede this market most of the success they've built so far with
the Halo effect will vanish.

Plus you failed to remember that Apple is not only a software
company but it creates its own hardware and they do both very
well. More so than Microsoft. Case in point VISTA, ZUNE and
XBOX.

So to me its just ridiculous on how you view it from that
perspecitve. These are totally two different companies again with
Microsoft being on low end from wavering at a high altitude.
From Apple shooting up like rocket.

Just my observation.
iPods have no KEYBOARDS!
by benjiernmd September 6, 2007 4:28 PM PDT
Remember that!
Reply to this comment
Huh?
by danielwsmithee September 6, 2007 4:49 PM PDT
Neither do iPhones which everyone loves, what is your point?
View reply
Zune Has NO Keyboard!
by MacTel Man September 7, 2007 5:29 AM PDT
Why in hell would you say that? The Zune DOESN'T HAVE A
KEYBOARD, nor that I know of, does any other music player have a
keyboard.

The iPod Touch has a virtual keyboard, so what are you talking
about?
It's Zune 2.0 vs Sandisk Sansa
by john55440 September 6, 2007 5:54 PM PDT
In terms of overall market share, Sandisk Sansa is a very strong #2.

Zune brand has to be a Sandisk Killer before it can dream of being a future iPod Killer.

Zune 1.0 was an obvious rush job. I suspect that Zune 2.0 will be much better.
Reply to this comment
Anyone who thinks Zune is dead...
by UnnDunn September 6, 2007 6:14 PM PDT
... need only look at Xbox for evidence of why Zune is very much alive.

Six years ago Xbox floundered in competition with PlayStation, but Microsoft learned from its experiences, kept plugging away at it and knocked it out of the park with Xbox 360 (hardware woes aside.) And today, it's PlayStation 3 scrambling to catch up to Xbox 360, not the other way around.

The Zune guys may be struggling right now, and it remains to be seen if they will ever pose a threat to Apple's hegemony, but to count out the Zune would be foolish at this stage.
Reply to this comment
And yet Nintendo kicks both their behinds!
by clpdan September 6, 2007 6:36 PM PDT
You didn't mention Nintendo in your comparison. They are
currently wiping the floor with both the Xbox 360 and the
Playstation 3.

The NPD Group said Nintendo shipped 425,000 Wiis in July, while
Microsoft shipped 170,000 Xbox 360s, and Sony 159,000 PS 3
View reply
Nope
by ewelch September 6, 2007 8:58 PM PDT
The reason your argument doesn't hold water is the PS 2 is
wiping the floor with both the XBOX 360 and the PS3.

I picked up a Zune at best buy the other day and it felt like a
cheap piece of plastic. I just bought my fourth iPod since
October 2001 and it's like Apple's Porsche compared to
Microsoft's Ford Pinto. (Someone had to bring in a car analogy!)

The Best Buy salesman tried to make the excuse that it's easier
to move files onto a Zune than an iPod, which I had to bite my
tongue so I wouldn't laugh in his face. And then he said
something about squirting (Ballmer's word) songs between
Zunes, and I had to point out the limitations there.

Let's face it, Microsoft has no idea how to do decent industrial
design when it comes to hardware. Period. They simply don't
understand what makes the iPod so good. It's not the hardware
at all. It's the software! It's treating customers with some
respect. And giving them a well thought-out user experience.
Can anyone imagine Apple "squirting" songs between iPods that
last three days and then self-destruct? Oppressive DRM is not
their cup of tea. They want DRM-free software. Microsoft pushes
DRM as a way to maintain their hegemony!

You can count Microsoft out on the Zune, like you can their WiFi
hardware, their WebTV, clippy, Bob, and the list goes on and on.
Xbox floundered?
by jelloburn September 6, 2007 9:55 PM PDT
The Xbox actually did very well, especially after Xbox Live
matured and developers started embracing it. True they didn't
sell as many units as Sony did of the PS2, but then again, if
memory serves me right, the PS2 is outselling the PS3 and was
outselling the Xbox 360 for a while.

Microsoft made a great console the first time around, so all they
needed to do was improve on a good product. With the Zune,
they started poorly, and now have to try and dig themselves out
of their hole. Not to say it is impossible, but it will take a major
overhaul and a load of innovation to match Apple at this stage,
and if that is the case, the product should probably not even be
called the Zune.
Zune described
by MacHeads September 6, 2007 6:36 PM PDT
Well it seems zune is such a nice product that people post more
than a few things about it ... in video ... and a single picture can
be more expressive than 1000 words so here are :

http://www.youtube.com/watch?v=TyuDAzzKnz8
http://www.youtube.com/watch?v=6ZXiLY4bo80
http://www.youtube.com/watch?v=buKaqRG2SFA
http://www.youtube.com/watch?v=V5ENLm0JsQw
http://www.youtube.com/watch?v=WRLRjKCGHek

And last but not least ..

http://www.youtube.com/watch?v=nRKIDdIaFyE&NR=1
http://www.youtube.com/watch?v=zPFu9ezddyk


Well does this tell it all ?
Reply to this comment
Apple actually stole the ipod patent from Microsoft !!
by Hardrada September 7, 2007 7:04 AM PDT
Microsoft and some other companies are actually suing Apple for ripping off patents for the ipod. A lot of people predict that if Microsoft wins along with these other companies that they are will seek royalties and commissions for every Ipod player that has sold in the past and that are in sale in the future. That is if Apple can afford to stay a float after losing all that money.

The "Zen Patent": Creative sues Apple over media player interface
http://arstechnica.com/news.ars/post/20060515-6838.html

Microsoft suing Apple stealing patent in ipod
http://www.macworld.com/news/2005/08/16/ipodpatent/index.php

Apple accused of patent infringement of another company
http://www.reghardware.co.uk/2006/04/18/burst_com_sues_apple/
Don't believe it, read here. Funny how people think Apple actually came up with all this on their own.
Reply to this comment
RE: Apple actually stole the ipod patent from Microsoft !!
by axsimulate September 7, 2007 4:17 PM PDT
If this is true, how come the iPod has many years head start as a
product over the Zune and the iPod market share dwarfs the Zune.
All these suits were designed to do, is to try and slow down iPod
sales while they try and catch up.
BTW look at dates, they are old, and if you read a little deeper you
will see that one of the companies that was sueing Apple, sued
Microsoft first over the same patents.
It makes lot of sense.
by nelzp0929 September 7, 2007 9:29 AM PDT
People are buying the Wii to compliment their xbox 360 or PS3. If they only bought a Wii, they would miss out on some of the the best games out there. I own 2 xbox 360's and a Wii, the Wii hardly gets touched in my house. I should of saved my $250+.
Reply to this comment
iPod Connect=Dell Axim from 4 years ago
by Kwasiowusu September 7, 2007 5:33 PM PDT
Apple has done it again. They have simply taken features that have been available in other media players for ages, repackged it, and announced another "life-changing", product.
As usual, the lazy media are lapping it up.
Reply to this comment
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