Ditch the Zune, Microsoft. Bring me Xbox Mobile

(Credit: Microsoft)

Matt Rosoff, a CNET Blog Network blogger who writes "Digital Noise," said in a recent blog post that he spoke to Microsoft's marketing director, Adam Sohn, earlier this week, and Sohn told him that although Zune sales were poor, Microsoft still plans to release a new set of players before the 2009 holiday season. According to Rosoff, Sohn said "they'll be a surprising step up from the current models."

Great. But I don't know why Microsoft plans to waste its time with the Zune. According to its latest quarterly filing, Zune platform revenue decreased $100 million, or 54 percent, during the last quarter. Considering iPod unit sales were up 3 percent during the same quarter and Apple enjoyed $3.3 billion in revenue, I'm not convinced Microsoft's plan to offer new Zune models is a good idea.

Instead of wasting our time and its money on the Zune, I'd like to see Microsoft ditch its attempt to make progress in the personal music player market and tackle the handheld gaming space. Why not? It could transfer all its funding and development costs to that division and in the process, jump in on one highly lucrative market.

Since its release, Nintendo has sold more than 97 million Nintendo DS units. Sony, although it's experiencing troubling times with its PlayStation 3, is actually performing quite well in the handheld space. In fact, it has sold almost 44 million PSP units.

December NPD sales showed that Nintendo sold more than 3 million Nintendo DS units. Sony sold more than 1 million PSP units, eclipsing the PlayStation 3 by more than 300,000 units during the month.

So as Sony and Nintendo continue to enjoy strong sales in the handheld space, Microsoft hitches its mobile device future to the Zune?

I don't want the Zune and I never will. But if Microsoft released a handheld Xbox device, you can bet I'd be first in a long line to pick one up.

That is, of course, as long as the Xbox handheld was worth picking up. Just a Zune with some games isn't going to do it. What I'm looking for from Microsoft is a real PSP rival; a device that improves the handheld gaming market.

In the Xbox handheld, I'd like to see graphical prowess that's at least comparable with the original Xbox. I also want two analog sticks with more responsiveness than the current PSP stick. To the right of the screen, I want the same Xbox buttons we've grown accustomed to.

But it goes beyond aesthetics and power. I'd like the Xbox handheld to offer true integration with Xbox 360 titles. That's somewhat possible in games for the PS3 and PSP, but it's not nearly where I'd like it to be. To be happy, I'd need to be able to transfer game progress from my Xbox 360 to my Xbox handheld and continue playing wherever I am./p>

I don't need touch technology, since I can already find it in the Nintendo DS, and I don't want Tetris clones. All I really want is to be able to take my Xbox 360 experience with me wherever I go. (Oh, and a price tag of about $250 wouldn't be too bad either.)

I know getting all my desires into one device might be difficult and I'm sure it would be expensive for Microsoft. But with more than $8 billion in its coffers, Microsoft has more than enough cash to make it work. I believe Microsoft could build this product, and its Xbox history shows it knows the games market better than music.

Microsoft is wasting its time with the Zune as the portable gaming market grows around it. I realize executives have said in the past that they're not looking to get into the handheld gaming market, but let's be honest, is the Zune and its irrelevance really a better option?

I don't think so.

Check out Don's Digital Home podcast, Twitter feed, and FriendFeed.

[kylebuttermore]

that is a horrible idea... even though the zune is down in sales it is still a superior mp3 player in every way except popularity, the reason it is down is because it hasn't come out with a new one. i assure you when they release the next one it will be back up.

[pentest]

I needed a good laugh today, thank you!

[TaxmanCDN]

I agree. The Zune is never going to have enough sales to be a significant player in the MP3 market. Maybe it is better than an IPod, but no one cares. Intellivision was better than Atari in its time, but how many Intellivisions got sold? Beta was better than VHS, but that didn't help it win the war. Microsoft is a known commodity in the gaming market and they should be building off of that and stop pouring money into a battle they can't win.

[hometeam360]

Are you also commenting on other sites, telling for Apple to stock making the Shuffle... Because that thing is useless. No better than the Chinese made players (but without a screen).

This Zune bashing is out of control. You ever even own a Zune??? If you did - you'd know that while it isn't cooler than the iPhone & iTouch - it is better (EACH AND EVERY ZUNE MODEL) better than ANY OTHER mp3/video player out there - and if you don't think - explain in detail (feature by feature).

[lordeagle]

@hometeam360: yeah! Even the Zunes that freeze up on New Year's Eve!! :p

[Eludium-Q36]

This is so ironically funny ! For years the Mac-faithful have claimed theirs was far superior to the prevalent PC but it could never catch up. Now you guys are saying the exact same thing ONLY REVERSED for the music player market! And who shoulld've learned this lesson better than Microsoft themselves ?! Their corporate product strategy is to be second or even third to market wtih everything and they'll never lead that way. That's NOT how they became the titan they did.

[Portal12]

I'm sorry, but the Zune still doesn't hold a candle to the iPod Touch. I have two friends who own them, and happen to love them. They work well, but to say they're better than any other MP3/Video player out there? Not by a long shot. They are average at best.

Telling Microsoft to make a portable gaming device to go head to head with Nintendo instead of Apple is suicide by a different name.

What they ought to do is just put all their efforts into making the next XBox system the best it can possibly be. I love my 360, but it has its flaws. They are this generations "go to" system for the best blockbusters, and they'll want to pull it off next generation as well.

[docster87]

Zune bashing is NOT out of control, needs to be increased! I don't own one, can't connect it to my Mac OS so it wasn't even designed for me. Like the other guy said, better doesn't always win. I can accept that many think the Zune is better than the iPod, as far as just the MP3 hardware. But what about the connection of hardware & software? Is the Zune marketplace better than iTunes? The iTouch changed the game and makes the Zune look like something from the 80's. Microsoft was simply too late in the MP3 player game and while it would make sense to switch gears and join the handheld gamer market - I bet Microsoft won't until again, it's too late.

Okay, my iPhone plays games. I got so many free great games that I don't have the time for all of them. Oh, for $10 I can also play SimCity on my iPhone. Can the freaking Zune play SimCity???????? Can any Windows Mobile device play a game even close to SimCity? How can you claim that any Zune is better than any iPod when iPods now include the iPhone & iTouch? And can we also compare the Zune marketplace to iTunes? Think that will help the Zune?

I will continue bashing the Zune until the sun explodes, or until Zunes can play SimCity. But I bet Zunes will die before either happen.

[cfranklin90]

@Eludium-Q36

That's actually Sonys strategy. :-( That sucks for me to say because they are my favorite company too.

[butterk2]

uhhh I was playing sim city on a toshiba pocket pc running pocket pc 5... Playing sim city is not a feat. Neither is proclaiming that when apple does it, it must be the first time its been done.

[jwsturg]

Don, I don't know why you hate the Zune. It kicks a regular iPod's ass in almost every appreciable way. iTunes is absolutely dreadful compared to Zune Marketplace and the Zune software, and if you truly care about music, then the Zune social is the only way to fly.

What MS should do is free up the Zune and attack by releasing Linux and MacOS versions of the software...

Now, otoh, I do like the iPod touch, but even still, as a music player it is inferior to the Zune.

[SkateNY]

Yeah, right. The zune is kicking the iPod's ass. Three Zune owners for every 100 iPod owners. Seek help. Soon. Or Zune.

[viper396]

@SkateNY January 31, 2009 9:23 AM PST

I sure hope you're not a Mac owner. Windows PC's significatly outnumber Macs yet every Mac user becomes a complete hycocrite when they try to justify it.

[sdf0013]

What a weak article. This line says it all.

"That is, of course, as long as the Xbox handheld was worth picking up."

The problem is there really aren't significant problems with the Zune; other than it's not an Apple product. Other Cnet editors really like the Zune. Mr. Reisinger obviously doesn't think the Zune "was worth picking up." That's fine. No product is for everyone. But this article seems more like a rant (editorial) than anything constructive. Mr. Reisinger I'd rather hear what you think MS could have done better. MS certainly has the pockets to throw money at the Zune and fix shortcomings. It would ultimately be better for the market if there was more competition than less. You're basically advocating that very thing for the hand held gaming segment. Well, why couldn't MS adjust it's plan for the market it's already in? They did that from the original Xbox to the 360.

You also said:

"Considering iPod unit sales were up 3 percent during the same quarter and Apple enjoyed $3.3 billion in revenue, I'm not convinced Microsoft's plan to offer new Zune models is a good idea."

To me, this also basically implies that everyone should exit the market. Why just Zune? Simply because you'd rather see a gaming specific product?

We need more competition. Yeah Apple has been pretty good at innovating to this point. But it always helps to have competition nipping at your heals to keep you on top of your game. Don't you think Apple took several queues from the Corwin style players to help keep their dominance? Not to mention if MS were able to execute on their vision for multi-platform integration. That would be a kick in the teeth for Apple. It's just that MS isn't moving nearly fast enough to lead the market on that front.

[sdf0013]

I have to respond to my own comments after realizing that Mr. Reisinger is the same editor of the article Why I want the Palm Pre to succeed. In that piece he says:

"Why support Palm? It's simple: I believe in competition and I think Apple has cornered the touch-screen mobile phone market with superior software and an outstanding App Store. And although that may suit iPhone owners just fine, I think a viable Palm Pre would be good for all of us."

HUH? Wait. In both pieces he's saying Apple has cornered the market. In the Palm piece he says we need more competition. In the Zune piece he says MS needs to exit because Apple is dominating. You should think through your position before going off on rants. You're contradicting yourself pretty badly here.


"Truly, you have a dizzying intellect. " - Man in Black (Princess Bride, 1987)

[dd13reis]

The cell phone business is an entirely different beast altogether. Comparing the two makes no sense. The iPhone doesn't have the vast majority of the market share in that space. The iPod does and sales have shown that no one cares about competitors there. That's not true in the cell phone market.

You're comparing Apples to Oranges.

Competition in the PMP market doesn't make sense. Look how well it has worked for MSFT so far.

-Don

[pentest]

It is simply, MS has no business in the music sector. MS sees someone making money and they try to jump on the bandwagon.

It was simply MS throwing as much crap on the wall to see what sticks. It didn't. The Zune is a loser, and should be ditched. There are better players out there than the Zune to compete with Apple.

[darksantos91]

I would love to see a xbox mobile. What i would like to add to it though would be zune support. The psp can play music, but its not great. Now if the xbox could use zune. the zune software might grow.

[AspectRatio]

Wow Don that's all really easy, huh? How could MS be so dumb?

Instead of going up against one strong, entrenched competitor in the music player space go ahead and take on two in portable gaming.

Nevermind that Sony has struggled mightily with its PSP and its high development costs making game developers flee the platform and its software sales shrink.

And don't worry about Nintendo's domination in mobile with Pokemon, Mario, Brain Age and its stable of powerhouses.

Just chuck away all you've done so far for a truly mass market (music players) and instead go after a smaller pie (mobile gaming) in a more competitive set.

Thank goodness you're just a writer for cnet and not an MS exec. They've got enough challenges as it is.

[dd13reis]

You don't believe that MSFT could have a better chance against Nintendo and Sony in the handheld market than Apple in the PMP space? I think that's ridiculous. Look, Apple has cornered that market and as much as some want to believe it's possible, Microsoft can't stop that. At the very least, it would have a better shot at making money in the handheld market, since so many people own an Xbox 360 and want handheld devices.

-Don

[ddhboy]

I'd have to disagree with you. Microsoft has certainly tried its best to make grounds in the music industry by making MP3 player standards, setting up its own stores, and of course making the Zune, but it is simply in a market that it cannot win. It doesn't have the industry connections to make the Zune store operate as well as iTunes with the depth of selection and more than likely never will. Things are of course different on the video game spectrum because Microsoft is now 2 systems deep in that industry, beating Sony in sales of the XBOX 360 and thus has a lot of connections in that medium as well as a lot of partnerships with big name developers and publishers, notably Rockstar (2K), EA and Ubisoft just to name a few. So if Microsoft made an XBOX portable it wouldn't be a shot in the dark like the Zune was, since Microsoft already has reliable connections, and corporations like Capcom who will more than likely support whatever they produce based on the results that they've had on other Microsoft systems like the 360.

[shoonya]

Touche' - its the next market segment MSFT needs to focus on. The rumors are Apple is working on something similar gaming device with larger screen than iPod Touch,

[billytech]

I think the minds at Microsoft are missing what I think is a very obvious solution.
If adding streaming movies to the XBox360 added 35% profitibility to Netflix in one month, Mostly because it IS a very good service, Why don't Microsoft ADD Zunes marketplace onto the dashboard of the XBox360 instead of the generic "Music" page. Zune maretplace IS ALSO very good, and would be right at home on the XBox dash. Bet alot more people would discover just what an undiscovered gem the Zune really is. They are already adding simple XBox live games to the Zune. That tie in would work perfectly.

[pepper454]

Just another "I wish they would" rant of an article. Why not just stop all zune development and start building ........ whatever. I could not read past the first half of this drivel. Yes... Don writes about everything .... crap and all.

[Blacksheep1982]

I'm a PC gamer first and a console gamer second (Wii, PS3) and I will play a lot of games for long periods of time, but ever since I became an adult, I both stopped using handheld gaming devices and wanting them. The reason is that I have no where to use them anymore. I drive most of the time and don't ride as a passenger, there is no public transit where I live and I don't fly anywhere for my job. So where does that leave me with handheld gaming, playing at lunch for 30 minutes? When I'm home I want to play games on my PC or big TV, not some tiny device. My days of playing Game Gear and Game Boy in the backseat on the way to grandma's is over.

The point is, I'm not sure there is a market for this device. 360 owners are probably older, like yourself and myself for that matter (although I don't own one) and I think most of us who don't travel a lot don't really have a place to use it. Look at PSP, it's got terrible sales and is geared toward older (male) gamers, this is a non existent market. DS is marketed to children and housewives, so it sells like hotcakes. My girlfriend has a DS, and even she rarely plays it and really only has time to play it at home. When the choice is Pokemon, Cooking Mama or WoW, she always chooses WoW.

It would just be another Zune, but probably with worse sales due to the market already being crowded with just two main devices. And when the next version of DS comes out, you can kiss PSP goodbye as the legions of Nintendo admirers are already sold.

[seven7dust]

well if everyone thought like you
then the DS wouldn't have sold in 80+ million range now would it !
thats right the mobile gaming market is bigger than the console market
not in revenue but on no. of devices sold !
so I think there's plenty of room for everyone
heck even Apple {the laggard in gaming} have entered it with the Ipod touch
and seem to be doing quite well
I personally feel MS should make a All in one device like the Ipod touch
cause it's the future.
my prediction is that handhelds r going to replace computers in future

If find this to be a common trend with people who haven?t even picked up a Zune. I have failed to have company, in car or home, who were not impressed with my Zune. Then I explain the features, and the response is WOW. Then explain how the "marketplace" works, and WOW. Then all I hear is my iPod doesn?t do that.

The biggest drawback I find with the Zune are accessories...however easily fixed if someone developed a Zune to iPod converter!!

[SkateNY]

Problem with your argument is that so few people actually "pick up a Zune" to write credible comment on it. Few people want it, and for very good reasons. Or haven't you and others who demand that the Zune should be a great product noticed that it isn't?

It didn't sell well on its release relative to other MP3 players, and it's only getting worse. There isn't even a debate about the Zune except among those of us who view it as a novelty item that deserves attention due to its failure to compete.

[lavkidd]

OK, so why does Cnet even bother posting the rantings of this guy? He obviously has no tech savvy or business sense. Everytime i see a stupid headline, I KNOW that the article is written by Don Reisinger. He just blabbers on about something that makes NO sense.

[dd13reis]

Interesting take. Now, explain to us all why my idea -- namely, to get MSFT out of a losing situation and give it a chance to make some money on hardware AND developers -- is a bad idea.

You mention that I "blabber on" and it "makes NO sense," but I see no examples for why that's true. Please explain.

Thanks,

-Don

[Eludium-Q36]

Don, I think what he's ranting about is the fallacy of your base argument, that M$ should abandon a market it's not doing well in. By that very logic Apple should've stopped making Macs a long time ago, and how would that have turned out for you ? No, M$ needs to incrementally improve the Zune and market it better. M$ knows - it KNOWS - it has to establish its presence on every competitive platform out there to stay in the game. Is Apple in cars yet ? Nope, M$ is. Is Apple in gaming, nope, M$ is.

So maybe if you were less bash-M$ or its product lines and more mature and sensible about your business advice you might get a bit more respect out of the posters here.

[alex-cnet]

Youre answering your own question lavkidd.

Sure, you may not agree with what Don says or the stuff he says might not be completely logical, but its the controversial articles that get the page hits. I see way more comments on Dons articles than I do on others. Thats more people checking back to the article, maybe even just to check who else disagrees with him. So Cnet will post his articles because he gets the hits, they dont care whats in them.

And no, Microsoft should not eliminate and replace anything. They should unify, which many have suggested and Im sure that is what they are working on. Microsoft has been diversifying for ages now and people have been saying it should stick to its core. But with all the money they have, they can afford to take the costs and in the end they are trying to provide us with that unified digital world that people want.

[seven7dust]

@lavkidd if you hate his articles so much why read them
and why even comment on them ???

@Elumdium ???? MS in cars ? when did MS start making cars ?
and Apple is in gaming , they claim that the Ipod touch is a mobile gaming platform
but the Ipod touch IMO is a PDA thats does games too !

[hometeam360]

Looks like a Lemmon. Smells like a Lemmon. Writes likes a Lemmon.

[terminalblue]

I lol'd

[sdf0013]

Heh. There are more replies about the writer than the subject he's covering. That's telling.

[terminalblue]

OK, i am really confused by your postion with microsoft. you are obviously a nintendo/sony/apple fanboy, but i can ut that aside for long enough to try to understand your position here. the thing about the zune is it isn't targeted at the psp/ipod touch user. it is targeted at the music enthusiast. most people that feel the need to take their entire music collection with them choose the Zune or the Ipod classic. this article could Easily be title "Ditch the Classic and the Zune".

I am an owner of Two Zunes and more then happy to be in the minority. And microsoft stated that they met their internal numbers. and you fail to point out that the Zunes own numbers were down because of last years 30GB zune price cuts.

The handheld game market is is tenuous at best. The only reason the PSP is still around is because sony cant admit failure, they even still produce minidisc players (Which i am also an advocate of). Sony is also aiming at the "tween and teen" market. Nintendo has been successful because they know where the money is (kids and parents). and that leaves Microsoft with either trying to cannibalize those markets or trying to whittle out their own base of adults.

Microsoft can admit failure with the Zune, and has in the past. But they wont and have stated numerous times that they will not abandon the project over bad sales.. and expecting them to start a whole new hardware and software division in this market is not just silly, its stupid.

[rapier1]

The Zune's only real problem is that its associated with Microsoft. If the Zune (especially the Zune 2) had been released by any other company it would be the darling of bloggers.

[dd13reis]

First off, when did I become a fanboy of all those companies you list? Have you read The Digital Home at all? I've beaten up on Sony more than any other company and I took issue with Nintendo earlier this week. Not sure where you get that idea.

"Why the PSP is around?" Are you kidding me? The PSP is what's holding the Sony gaming division up. Just ask anyone at Sony and they'll confirm that. Sony will be bringing a lot more to store shelves through the PSP in the coming months because of that fact. There's no reason to suggest Microsoft can't be successful there too.

Why shouldn't MSFT abandon a product over bad sales? I just don't get the logic. I think it would make perfect business sense to do just that.

-Don

[terminalblue]

As i stated, Don. The Zune Poor sales are exactly what Microsoft was expecting, Microsoft isnt losing money on the Zune, Jut a favorable public opinion because of articles like this.

Like most Articles on CNet i have been reading TDH and come to the conclusion that your opinion of microsoft has always been less then favorable. And there is nothing wrong with that at all...but saying that you dont have a bias towards sony, nintendo and apple is complete out of line...

here is a list of articles written by you favorable about Sony, Nintendo and Apple...
http://news.cnet.com/8301-13506_3-10148930-17.html
http://news.cnet.com/8301-13506_3-10146849-17.html
http://news.cnet.com/8301-13506_3-10144106-17.html
http://news.cnet.com/8301-13506_3-10143235-17.html
http://news.cnet.com/8301-13506_3-10142425-17.html
http://news.cnet.com/8301-13506_3-10136000-17.html
http://news.cnet.com/8301-13506_3-10137844-17.html
http://news.cnet.com/8301-13506_3-10129108-17.html
http://news.cnet.com/8301-13506_3-10128950-17.html
http://news.cnet.com/8301-13506_3-10127982-17.html
http://news.cnet.com/8301-13506_3-10124019-17.html
http://news.cnet.com/8301-13506_3-10121135-17.html
http://news.cnet.com/8301-13506_3-10118038-17.html
http://news.cnet.com/8301-13506_3-10111170-17.html
http://news.cnet.com/8301-13506_3-10106003-17.html
http://news.cnet.com/8301-13506_3-10101048-17.html
http://news.cnet.com/8301-13506_3-10096513-17.html
http://news.cnet.com/8301-13506_3-10085860-17.html
http://news.cnet.com/8301-13506_3-10076070-17.html
http://news.cnet.com/8301-13506_3-10074387-17.html

These are articles that you have written that have been outwardly negative towards Those three companies...
http://news.cnet.com/8301-13506_3-10076797-17.html
http://news.cnet.com/8301-13506_3-10077325-17.html
http://news.cnet.com/8301-13506_3-10078340-17.html
http://news.cnet.com/8301-13506_3-10079860-17.html
http://news.cnet.com/8301-13506_3-10125323-17.html
http://news.cnet.com/8301-13506_3-10129785-17.html
http://news.cnet.com/8301-13506_3-10132109-17.html
http://news.cnet.com/8301-13506_3-10149797-17.html

I gather those article, or rather blogs, for the last three months. You wrote 21 BLOGS that generally cast sony, apple and nintendo in a positive light. But you only wrote 8 about those companies that were less then positive. And I couldn't even find your (ps3 will be your friend for ten years article...maybe that wasnt by you, but i thought it was).

Now for artciles that were you blogged negatively about Microsoft...
http://news.cnet.com/8301-13506_3-10153264-17.html
http://news.cnet.com/8301-13506_3-10148886-17.html
http://news.cnet.com/8301-13506_3-10118975-17.html
http://news.cnet.com/8301-13506_3-10111170-17.html
http://news.cnet.com/8301-13506_3-10101948-17.html
http://news.cnet.com/8301-13506_3-10094835-17.html
http://news.cnet.com/8301-13506_3-10092363-17.html
http://news.cnet.com/8301-13506_3-10079251-17.html
http://news.cnet.com/8301-13506_3-10074771-17.html

And in these article you were favorable Towards Microsoft...
http://news.cnet.com/8301-13506_3-10147933-17.html

You have, in the last three months, written 9 blogs that cast Microsoft in a negative view. you have been totally written favorably about microsoft 1 time. It amazing how with 20 minutes of research and a memory of your clearly biased writings that i can make your "I am not a fanboy" comment seem completely inaccurate.

And the PSP a not even close to holding up the gaming division at Sony, The PS2 is. The PSP is part of Sony's "we will gt out of the red sometime(in the next ten years)" strategy. I don't need to ask anyone at Sony, because the numbers speak for themselves. The PS2 still even takes most of gamers time according to this article (http://news.cnet.com/ps2-crushes-wii-xbox-in-gaming-minutes/?tag=mncol;txt) written by Dave Rosenberg. the PSP hardware has been partially successful and its hard sales have been a disaster. I think you might want to double check with your "sources" at Sony.

[dd13reis]

First off, wow! Now that is some serious research. Those are the kind of comments that make these threads better, not dumb one-liners. So thank you for that. Seriously.

Secondly, I do have to take issue with some of the links you provided in there. The headlines aren't the full story. In fact, one, for example, the "lack of longevity" post is actually in favor of Microsoft and the Xbox 360. You also missed at least two posts saying why I thought the Xbox 360 should win the console war, as well as my two or three posts saying that the MSFT Seinfeld ads were great. You also didn't point to my podcasts, which is a place where I talk about the good and bad at these companies constantly. So, I think your spread is more than a little off.

But I really do like how you went through all that. It tells me you're, at the very least, engaged in Digi Home even though it seems you don't agree with me at all.

Anyway, thanks for the comment. I really do think it's a keeper.

-Don

[terminalblue]

Thank you for the response. I read at least ten other tech journals daily, this is just one more stop along the way. I try to read the opinions of bloggers and writers that i disagree as much as i do the ones that hold dear.

I Only looked into the last three months of blogs, and i tried to ignore blogs that were "critical" as opposed to negative. Which is why is skipped the "Seinfeld" and the "console war" blogs.

I dont think most of your reader come here to trash you (OK, maybe a few), read the article, and feel epically trolled and dont really know how to respond. But i think that you have put off many of CNet's regular readers to the point that they react to the headline, skim over the article and walk away completely dissatisfied.

[Eludium-Q36]

Dang terminalblue, you had Don on the ropes then you had to go kiss and make up. He was pwned! Call his bias for what it is and stick with it! He's not your friend, it's his business to write technically accurate and hopefully unbiased articles and when he doesn't do that it's up to us to keep him honest. Don typically shoots from the "lip" and doesn't show much depth of thought and that's what gets him into trouble. You don't see this type of backlash with every Cnet blogger, just the ones like him who are transparently biased and/or technically superficial.

[terminalblue]

Eludium-Q36, i didnt think i was kissing up, just giving my thanks for a response.

but i do pretty much mostly agree with you.

[Zoobie]

The funniest things about Zune users is they are what iPod users were when it first launched (and what OSX users still are). They defend their purchase to friends (and always get a "WOW--I NEVER KNEW AN ELECTRONIC DEVICE COULD BE SO WONDERFUL" type response...at least in forums) and have really just become their own cult.

The iPod exited the geekdom market and became a mass market device. I don't see the Zune ever being more to the iPod than OSX is to Windows. I have OSX and love it, but realize it's not going to dethrone Windows and I'm OK with that--and Windows users should appreciate that OSX, although a smaller player, has forced Windows to innovate. So if Zune innovates and forces Apple to update the iPod, I'm all for it--but I can't see it ever being more than a niche player.

[SkateNY]

Original iPod users didn't, and didn't need to, defend their purchase. The iPod was introduced during an economic downturn in October of 2001, a recession, that was caused by the terrorist attacks of 9/11. And it still competed and, in some cases, bested the MP3 players that had been around for quite a while at that time. It has only increased in sales since then, regardless of the efforts by RIM, Intel, Dell, Palm, Motorola, and every other nominal competitor since the iPod's release.

This whole thing started better than seven years ago, and there are still people whining about how the iPod -- and then later -- the iPhone, is just a fad.

Great. I'd love to have a fad that lasted seven years and brought hundreds of millions of dollars and revenues.

[outers55]

I would love for Microsoft to come out with a portable gaming console (I actually e-mailed Major Nelson about this a couple of weeks ago), but I don't think it should replace the Zune. Zune may have a long way to go, but the portable system should be funded within the now profitable Xbox division. I like to wait a year after new tech comes out to make sure everything is alright and so that the first round of firmware updates have been released, but just to get this idea out there, there is only one thing that would have me standing in line release night. I would love it if they would allow you to port original Xbox games (the physical games you already own) to it, perhaps via the Xbox 360. I KNOW IT WOULD HURT THEIR INITIAL ATTACH RATE!!! (please forgive the caps) I feel that it is excitement over new games that drive attach rates (since they don't count used games) and that after the first couple of months you would see the attach rate rebound. In addition, allowing people to copy their original Xbox games over would drive hardware sales dramatically.

p.s. Grad school sucks; anyone know how a biologist with an MBA might get a job with Microsoft's gaming division?

[tipoo_]

While i would also like to see a microsoft handheld gaming product, i have to disagree about discontinuing the zune. Zune is only sold in Canada and the United States, whereas the iPod is sold in North America and several international markets. so of course, the pesky united states recession will hurt the Zune more.



besides, just because profits are down from last quarter, doesn't mean their LOSING money. they should definately release the third gen (the 120 IS NOT third gen) zune earlier than the holliday season of 2009 though.

[droid137]

Contrary to a lot of the other comments, I actually agree with this article. Having played Hexic on the Zune, I really want more from Microsoft in the portable gaming arena. They should create a gaming unit, with music/media as secondary functionality. Make the games based on the XNA framework, which would help them to be ported to the 360/arcade and the PC.

Now that would be interesting and desirable.

Just redirect the smart people from the Zune to the Xbox Portable, and reuse the Zune Marketplace to access Xbox Live for the Xbox Portable.

Come on, even Apple canned the Newton and the Cube when they were underperforming. Surely people can't criticize Microsoft for canning the Zune in its awesome technology but mediocre to poor sales. There is plenty of success to be had elsewhere.

[msjonker]

"Wasting our time"? If you don't want a Zune, don't think about it, but that's not a reason for Microsoft to ditch the Zune.

The Zune needs a better campaign and some UI touches, that is really all. Its just hard to sell to someone who only knows the term "iPod".

[tru Neu]

Millions of great ideas for existing or non-existing products are out there. I would agree that a portable gaming Microsoft device lures many people. It is a great idea, but not all great ideas sell. The marketplace as of right now is full with portable devices. The iPhone will soon be a mobile gaming platform. A new DS is on its way as is a new PSP. Xbox or Zune will be behind in another unfamiliar platform which poses a huge risk. Microsoft recently cut R&D down for that division.

Perhaps the best thing is an iPhone rival. Although, it seems like the same risk, as a purely mobile gaming device it is not. Smartphones are the new cellphones. The market has room to grow. It is not segmented like the gaming market. Therefor, a gaming device/zune/cellphone sounds like more sound idea. Using market research one could find out when people are dew for contract renewals on their contracts. The BB Storm was rated low by the critics but the die hard BB users still bought over a million of them. Having Windows Mobile as a solid background is much better groundwork than many other companies have. Microsoft also bought the company responsible for the Tmobile Sidekick.

A gaming smartphone is what the Zune should be. The research needs to be conducted, but it appears that taking the same amount of risk as a purely gaming device the Zune smartphone would have better long-term success.