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April 16, 2008 10:15 AM PDT

What's up in Zune-land?

by Matt Rosoff

"Integrated innovation" was a Bill Gates mantra, and may leave the building when he retires. But even without Bill's blessing, outsiders often imagine Microsoft quickly stitching different products together into a more coherent whole. For example, why can't Microsoft operate a single download marketplace offering music, video, and games, and make that marketplace accessible from the Media Center interface, Xbox Live, Zune PC software, and its Mediaroom IPTV system? And come to think of it, Netflix CEO Reed Hastings joined Microsoft's board of directors last year--why not offer movie rentals as well?

Lots of cooks in the Zune kitchen these days.

(Credit: Microsoft)

The trouble with such scenarios is that they're easy to draw on a whiteboard but complicated to execute. Say you combine the Xbox Live Marketplace and the Zune Marketplace--how do you cut the 10 million current Xbox Live customers over to the new service without interruptions? How do you tailor the interface and featured content to the device accessing it? How do you convince owners of movies and downloadable video games, who thought they were licensing content to a relatively closed system (Xbox Live) to offer that content to millions of Internet-connected PCs, where the risk of piracy is higher? Worse yet, if you decide to take the tough road of integration, by the time you've coordinated development between all the different product teams, alerted partners and the sales channel to the new strategy, and finished the long march, the market may already have moved on to the next big thing.

Two fellow Microsoft-watchers, Todd Bishop of the Seattle P-I and Mary Jo Foley of ZDNet, have both commented on the move of former Media Center leader Joe Belfiore to the Zune team, which Directions on Microsoft noticed in our latest tracking of the Microsoft organizational structure. (Todd called me for comment and quotes me in his blog posting, but I haven't talked to Mary Jo about this, and am not the anonymous source she cites--I have no knowledge of the initiative she's blogging about.) Belfiore oversaw Microsoft's eHome initiative, which created the Media Center PC, and his background in video could indeed mean that Microsoft is considering building a video marketplace for Zune.

Then again...Rick Thompson, who at one time worked in the same broad business group as Belfiore (looking at "advanced scenarios" for Windows PCs) and has a background in the Microsoft Hardware division, is also a vice president in the Zune group, having moved there last October. Does that mean that Microsoft wants more hardware expertise on the team? Xbox guru J Allard continues to be involved as well, and we know that Microsoft's looking at developing games for the Zune. Then there's the whole Danger acquisition and rumored Zune phone.

Meanwhile, we haven't seen Microsoft trumpet any NPD figures for the holiday season, which leads me to believe that Zune 2.0 didn't sell very well, and is probably not in the No. 2 spot that Microsoft was aiming for.

In other words: Zune as a music-focused player is not competitive, and Microsoft has a lot of cooks in the kitchen trying to make something new out of it. We could see a bunch of Zune-branded devices with slightly different feature sets--the "traditional" Zune might add video content and simple games, but we could also see Zune-branded devices focused on portable gaming (competing with the Sony PSP and Nintendo DS) and with telephony functions (competing with the iPhone), but all featuring music playback and using the Zune software. Or, the brand might disappear entirely and be replaced by the next greatest thing ever. Whatever the precise brands and products look like, Microsoft isn't giving up on the portable entertainment space, and music will continue to be a part of that initiative.

Matt Rosoff is an analyst with Directions on Microsoft, where he covers Microsoft's consumer products and corporate news. He's written about the technology industry since 1995, and reviewed the first Rio MP3 player for CNET.com in 1998. He is a member of the CNET Blog Network. Disclosure.
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by Unknown2You April 17, 2008 7:02 PM PDT
I love the Zune 2.0! It's a great device.
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by cnetcensorssuck April 17, 2008 10:21 PM PDT
You and the 3 others that bought one. ;-)
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by cnetcensorssuck April 17, 2008 10:21 PM PDT
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by markdoiron April 18, 2008 4:25 AM PDT
Sure, there aren't a ton of Zune sales. But, my son and I each have one. The auto-synch by wi-fi is really a thing of beauty. We keep three PCs and two Zunes easily synched with music--it just magically happens. It makes a wonderful audio source in the docking station. Sure, it doesn't have iPod's neat feature of control through my home audio system--but I don't really miss that. My style of music listening is to turn it on and let it play. Who needs to be able to select songs through my home amp: The Zune remote works fine for that purpose, anyway. I also like the music by subscription. I can't imagine having to pay for each song. And, I can still rip the songs I really want to use off of Zune Marketplace (say in a home DVD production). My only gritch would be the lack of many titles. But, I suspect that's mostly because I listen to pretty obscure artists (No RIAA!!!). --mark d.
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by mcphenom April 19, 2008 9:15 PM PDT
you can get it to work with most home audio by getting a cheap 5 dollar ipod av cable andplugging it into the back of your home audio or any other AUX port so you can input music direct from the zune

or if you have a zune 80 you can have flawless quality slideshows and video with the zune 80's tv out function.
by zgreenwell April 18, 2008 6:27 AM PDT
I don't see why they can't integrate the zune market place and the xbox live marketplace. Anyone who has a live account can use it to log on to Zune and vice-versa. The MS points you have carry between them too. It only makes sense to further integrate these two service. I would personally like to see Xbox Live Arcade games on the Zune. Pac Man Championship edition anyone?
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by make_or_break April 18, 2008 7:52 AM PDT
The Zune 80 is, for the most part, a GREAT device. I find it much more appealing to use than its direct iPod competition, but alas I know this is a minority opinion since most of the Apple fanbase don't care for anything other than what Cupertino 'wheels' out each year. However, the big letdown with the Zune has been its client software. Zune 1.x was far from perfect, but at least its later iterations actually worked with a reasonable level of dependability. 2.x has been a severe irritation to an otherwise stellar MP3 player.
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by wellseasoned April 18, 2008 9:57 AM PDT
I couldn't agree more about the software. I have the original Zune 30 gig, which lacks in a few of the features of the 80 gig, but i think to be an otherwise quality device. I'm still very satisfied with it. But interacting with this new software iteration is more or less terrible. it has created duplicate copies of songs within the software, mixing up the song data occasionally along with it. It had messed up my entire collection at the beginning of the software switchover, which i had to go in and fix. And its most egregious offense is the fact that editing songs' data is basically impossible within the software, and can only be done regarding a few simple parts of the song. I have to use an outside program to fully be able to change and arrange songs the way i want them. Microsoft, when your Zune software makes me yearn for iTunes, I think there may be a problem. As excited as I would be for video and games on the Zune software, I think the Zune Team should fix what is already out before moving on to the next big step.
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by delf76 April 18, 2008 6:31 PM PDT
i've always wondered why zune market place and the xbox live marketplace isn't integrated as well. it just doesn't make any sense why they don't do this....
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by timtay0102 April 19, 2008 7:23 PM PDT
Don't wonder. That's because unlike Apple, the culture of full software integration hasn't taken hold in Microsoft for a long while. That's the main reason on why while Zune is a good product by itself, the software integration for downloads and for similar microsoft products vis-a-vis is not really there.

This is unlike the iPod which is seamlessly connected to iTunes, and even more so to Leopard OS X.

In the end, cobbling a bunch of people from here and there means that there will be many jigsaw pieces that will not fit. I still wonder why MS hasn't recognized that such a messy approach only makes their products after all these years. No wonder most MS products have some form of BSOD.
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by nothankscnet April 19, 2008 8:15 PM PDT
Thats because Apple got popular again because of the iPod, so they made their OS and Apps fit the iPod. Since Windows was already developed and popular, it makes it harder to integrate a device into it.
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by Sheepish12 April 20, 2008 1:54 PM PDT
Sir, please remember the Nokia NGage and countless other current devices like the Blackberry (ever typed an email on one?) and even the iPhone (the phone feature is awkward). Combining features like telephony, cameras, and gaming on one device or even on the same operating system rarely has a good result. For the most part it seems these devices become either grossly inadequate in all their features, or at least lacking in some. This is the reason that you don't run a server on Windows XP Home Edition or you don't run Windows XP on your cell phone. It's all too easy to envision a web browsing cell phone camcorder as the new wave in technology, but because of the limitations of portable devices (battery life, size, processing power, storage, etc.) most of the time combining things ends in disaster.
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About Digital Noise: Music and Tech

Matt Rosoff is an analyst with Directions on Microsoft, where he covers Microsoft's consumer products and corporate news. He's written about the technology industry since 1995 and reviewed the first Rio MP3 player for CNET.com in 1998. He's also a bass guitarist and an avid collector (and digitizer) of LP records. DISCLAIMER: This blog contains the personal opinions of the author and does not necessarily represent the opinions of his employers or of CNET Networks. As an IT industry analyst, the author occasionally agrees to nondisclosure agreements from Microsoft or other companies, and he will not violate the terms of such agreements on this blog.

He is a member of the CNET Blog Network and is not an employee of CNET.

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