Comments on: Zune sales plummeted during holidays

The software maker noted in its SEC filing that its Zune sales were down by $100 million, or 54 percent, from where they were a year earlier.

[bgnm]

Microsoft has never had an original product--all the way back to MS-DOS, they're poor copies, usually of Apple products, sometimes of others. Microsoft can no longer copy and buy its way to success, and it has never shown an ounce of originality.

[Auzie]

people cannot under-estimate the zune devices, for over or just 2 years now microsoft has kept it in buisness, and it has grown outstandingly, if you would compare the older devices to the newer they have increased the "features, looks and functions" by far. You may say that "zune" will never beat ipod but reality is that zune is probobly in third or sencond while ipod which has been in buisness for god knows how long, is in first, with the zune catching up so fast and the people that depend on its interface, and suppliers i believe that microsoft would be making a terrible mistake, maybe they are not the "best" selling mp3 but THEY ARE getting their and i want that day to come, not the day where bill gates stands up infront of the press and announces the microsoft zune is "disbanding" its sales.
consider it be that you shouldnt cancel out the zune.
AUZIE

[Auzie]

yea i would say in mind the only two products i wanted to buy when i considered an mp3 player were the "zune" or the "ipod" so i would say they are pretty close in place.

[denster2u]

The Zune is a terrific device that is ridiculed only because Apple wins the popularity contest. Popular and Sexy doesn't translate to being the best at anything. Many of the "best selling" products on the market are indeed inferior products. Apple won the popularity contest and sells boatloads of ipods because it's "cool" and people will supposedly think you're "cool" when you have one. If people bought products based on their true merits, Microsoft would be ahead of the game. The Zune is a very elegant, and simplistic design with well thought out software, features and functionality that make sense. I've used both products and I believe that in back-to-back comparison, if one were to use both products based on merit and not on brand name, the Zune would win hands down. The ipod suffers from some of the most blatant flaws, including being tethered to one and only one computer with clunky, resource hungry software, "plays on nothing else" file format, price gouging, and the lack of a subscription-based business model. But people continue to buy ipods by the millions because of familiarity and popularity-- it's what they are comfortable with and it's what all their friends have. No, the Zune is not sexy and not popular, but it is a very competitive, well-designed product. I own two Zunes and I would highly recommend them to anyone over an iPod.

[SkateNY]

Another person suffering from delusional psychosis. It's starting to look like an epidemic.

[Dalkorian]

by denster2u January 24, 2009 4:13 AM PST
The Zune is a very elegant, and simplistic design with well thought out software, features and functionality that make sense.

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Well thought out software?

http://gizmodo.com/5121311/30gb-zunes-failing-everywhere-all-at-once

That was too easy. Go tell your masters at M$ that you have failed them and that you do not deserve your kickback.

[ppgreat]

"well Apple make only $500+ million on software sales
while Ms makes something like $40-50 Billion"

So, if viewed as a percentage of desktop ownership, Apple is kicking butt.

[gcpolsen]

I love my Zune. Microsoft has done a great job with the software upgrades also. One problem MS needs to address that could help their sales is to make sure that the Zunes are displayed properly in the stores. The last time I looked at them at Best Buy, they were running old firmware, so they couldn't show off all of the current features, like the ability to add songs to your cart from the built in FM tuner. That is slick! Also, they need to add the ability to "repeat" to their videos, so that they can show off that beautiful screen on the demo units. The Zune is the only mp3/media player that I have ever owned that didn't break down in less than six months. It is a solid feeling player, for sure. I was a convert and I will never turn back.

People who haven't actually owned a Zune need to keep their uninformed opinions to themselves. I don't know why people feel the need to comment about that of which they know nothing. That reminds me... the 30gb Zunes did not "brick" at the end of the year. The 30gb manufactured in 2006 had a bad line of code that did not allow for leap year. It was fixed in about 15 hours and the Zunes all went back to work. It was not a big deal.

[Dalkorian]

by gcpolsen January 24, 2009 9:48 AM PST
That reminds me... the 30gb Zunes did not "brick" at the end of the year. The 30gb manufactured in 2006 had a bad line of code that did not allow for leap year.

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ROFLMAO!

1. The 30G zunes *did* brick, though admittedly only for a day. Denial does not change reality. They also did it themselves, evidently turning off to brick themselves if they had been left on.

2. Why does an mp3 player need to keep track of how many days there are in a year or what the current date is? It's just playing music files, right?

3. I think I learned about dealing with leap years in my very first CS 101 class. I'm guessing the bozo's who wrote the software for the 30G zunes either never attended that class or failed out of it. What company do they work for again? Hint: they have about the same record when it comes to security.

Go tell your masters at M$ that you have failed them and do not deserve your kickback.

[incendy]

This number cannot be surprising to MS. Most MP3 players are sold to fans of the product but instead of offering something new each year in Hardware Microsoft seems to be working to make it a good experience by offering upgrades to the products consumers have already bought. Apple uses a different stratagy as their primary capital is based on hardware so they offer up new hardware each year with advantages to try and entice their users to upgrade.

Right now it is paying off for Apple but in the bigger picture I think MS is doing a better job at customer satisfaction which could pay off for a long time to come in a lot of areas.

[iConquered]

The Zune, like many of Microsoft's recent endeavors, represents an attempt to fend off "potential threats" to the Microsoft empire. In many ways I can understand their concerns, but in other ways, their fears do not seem entirely well founded. They have been largely lethargic in their efforts, many of which turn into financial drains on Microsoft's over all profitability.

Of the sectors that Microsoft has branched into, none of them have continually yielded consistent profits or margins. The Xbox, Xbox 360, Zune, Zune Marketplace, Sidewinder peripherals etc. None of them have been profitable ventures. They have succesfully expanded the Microsoft brand name, but they have done nothing for Microsoft's fiscal concerns. Their lack of marketing is also very hurtful. They have become the lumbering dinosaur that they once mocked IBM for being. This is a very visual society where the term "instant gratification" takes on an all new meaning.

This is where Apple has been so successful. One can never take away from Apple's ability to innovate, but in their past, many competitors were able to mimic their innovations and rob Apple of the glory. It wasn't until they rejuvinated their marketing (a la the 1984 Superbowl ad) in the early 2000's, that they managed to regain public recognition. The switch ads were not entirely successful, but what they spawned (I'm a Mac) became a huge vehicle for promotion. The silhouette iPod advertisments are so much a staple of pop culture, that it has been copied ad nauseum in various instances.

People are Microsoft customers currently, because Microsoft has been a large presence in the home via desktop computers. But if they are ever to remain competitive or tackle new markets, they must begin to properly change their image. And this doesn't mean horribly misguided commercials with Seinfeld or stolen concept "I'm a PC" ads. Microsoft needs to show the world that they are truly cutting edge and not just the defacto standard. If they can not realize this, then they will find themselves in the bitter position of IBM, only a decade and a half ago.

[SkateNY]

I agree. I would also add that "people are Microsoft customers currently" because Microsoft was adjudicated as an illegal monopoly in restraint of free trade by a Justice Department attached to an administration that reaped millions of dollars in income from Microsoft lobbyists. In effect, many "Microsoft customers" didn't have a choice.

[frankwick]

I tried to buy a Zune 8 GB Red. Most retailers said out of stock. I found one that said it was in so I placed the order on 12.8.08. Still, today, no Zune. I am giving them to the end of the month and canceling the order.

So why did sales plummet?

[NJDevilsFan]

Microsoft needs to do some marketing for the Zune! Any marketing. They have not. They need to sell internationally. They have not. They need to focus people's attention on what they are good at (music discovery, social interaction) and not allow the focus to be that "Zune is Microsoft's version of the iPod".

Clearly there's a lot of reasons that Zune sales were down this year, some of the issue being the economy and some being the "lack of sexiness". But largely... no one knows what a Zune is.

I have three of them. I've had four iPods and while they were fine, they were... just music players. iTunes is terrible, the Genius (or whatever they call it now) was never able to recommend anything to me... I've gotten into a lot of different music thanks to the Zune.

Microsoft has been a lot about their version threes lately. They've totally gotten the software right with version three of the Zune software; they're essentially still on version 2 of the hardware. I bet version 3 is better.

But in the end... they have to stop letting Apple run the marketing for everything. Run some ads on American Idol or the Super Bowl or something... make sure people know it's there. Oh, and sell it internationally. I'd be curious to know how much of Apple's 3% growth was domestic versus international..

[Dalkorian]

by NJDevilsFan January 24, 2009 7:24 PM PST
They've totally gotten the software right with version three of the Zune software

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You mean they now realize that leap years exist?

It's funny how M$ apologists try to deflect attention from the one question people need to be asking - why on earth a mp3 player needs to keep track of the date to begin with? If it wasn't for M$'s shoddy coding skills, we wouldn't have known about the zune's dark secrets and DRM tie-in schemes.

You go ahead and trust the same people who wrote software that bricked devices on the last day of a leap year all you want. I have more brains than that.

[ViEtNiNjA007]

I hope that the zune brand stays alive, or that Microsoft gives us $250 to buy an iPod iff they drop the zune.

Microsoft needs to truly innovate, especially now that Steve Jobs is out, they can take advantage.

[ViEtNiNjA007]

I hope that the zune brand stays alive, or that Microsoft gives us $250 to buy an iPod if they drop the zune.

Microsoft needs to reintroduce the Zune. Many still think the Zune as the ugly 30gB. Make a new symbol, a new slogan, anything. Just change its image in the public.

[Dalkorian]

I still find it amazing that there are people like you born every minute.

[surreal76]

I guess I'm a Zune "apologist". I love my 80GB and don't have one complaint about it at all. Microsoft has not done a good job at getting the word out on it and has let the rabid Mac-Fanboy base run all over it.

MSFT should stick with the Zune and it's compatibility with Xbox and your Desktop. Dropping the Zune would be yet another reason for people to avoid adopting Microsoft products in the future if they need to worry it won't stick around.

Xbox had a long hard road the first cycle but look at what's happening now, Sony is in a distant third. NOBODY predicted that except Microsoft. Stay with Zune, stay with the unlimited monthly plan and get the word out. We don't need celebs telling us why your products are good "Common" or suck "Seinfeld". Just make the case and show what it does.

[hammeroftruth]

It's also quite sad when a company like Microsoft doesn't check on what kind of image the Zune makes in stores. My local Target store has a Zune display and it's covered in dust and ironically it's on an isle that shares discontinued electronics and mark downs.

So with that kind of image, would you buy one?

[cbaisa]

i love my zune and the all-you-can-eat music pass. Microsoft needs to do more marketing because none of my college friends even know what the zune is. I constantly give full product reviews to people who are too sheep-like to think for themselves and do a little research before they buy a device. Most people are impressed with what the zune can do and a few have recently gotten the flash versions. I'm not usually one to be a fanboy but with the release of version 3 software the zune is my favorite mp3 player by far.

also, i don't need my phone to be an mp3 player because the software and interface usually sucks. the only good phone mp3 combo is the iphone, but i don't want to have to take a second job to pay for the device and data plan. I'll just stick with my Verizon Dare and subscription Zune. The two together are cheaper and more flexible for me.

besides i'd be willing to pay more for the subscription service now that i have used it. my new favorite pastime is music hunting, and i've never been more excited about music as i am now.

[Dalkorian]

I pity you the day you decide to stop paying for that subscription - no I don't. You deserve what's coming to you.

[SkateNY]

I don?t doubt that many or even most Zune owners are satisfied with what they have. Here?s my thing: Apple dove into the MP3 market when that market was already well on its way to maturity. The iPod quickly made a big splash, and iTunes has played no small part in helping the iPod acuire a 70% market share. Apple did not engage in illegal, monopolistic business practices in order to achieve that level of prominence; nor did Steve Jobs hypnotize buyers, steering them towards the iPhone.

When the iPhone was released in October of 2001, it succeeded during a recession caused by the terrorist attacks of 9/11. If the current economic climate adversely affected the Zune and other consumer products, then it stands to reason that it also adversely affected iPod sales. Yet, Apple reported a growth in iPod sales for the most recent quarter, versus a 54% drop in Zune revenues. How much better would the iPod have faired this quarter without the deepening recession?

I believe that Microsoft and its investors need to re-evaluate the Zune with regard to how it affects other products, and how it affects shareholder interests. If I?m a Microsoft competitor ? and I don?t believe that Apple and Microsoft compete in the sense that they appeal to very different groups of customers ? then I truly hope that Microsoft continues to throw money and other resources at the Zune.

[OS11]

classic Microsoft, blame everyone else for their failures...

"It's the category, it's the business, it's the economy,"

NO.... "It's the device, it's the integration, it's the marketing"

Apple works hard and gets these mostly right, Microsoft fails at all of these, thus the 54% drop in sales.

Wake up Microsoft, your company is increasing a textbook case of historic business failure...

[Dalkorian]

Personally I was a little surprised when M$ didn't blame their customers for trying to listen to music on an untrusted 366th day of the year.

[vmlenigma]

Ive seen the Zunes at Best Buy, and Honestly Id much rather use an old walkman vs this thing, no touch wheel, no innovation, ugly colors , I dont have an ipod but I do prefer the interface when comparing the two.
even though i do have a mac, I prefer Iriver when it comes to my MP3 player

[oxtail01]

I bought a 30GB Zune couple of years ago at a discount. For all you ipod fan boys and girls, Zune does exactly what it suppose to do - play music and videos without much fuss. All the other extraneous stuff is just that - fluff. I'm no fan of MS OS but I use it every day and I can put up with it. For all you MS haters - grow up!

[AaronCT123]

The only thing this article tells me is that in a limited market of only two countries, a brand that is barely advertised did badly in the midst of a weakening economy against well-established, international brands.

The current hard disk-based Zune (either the discontinued 80GB model or the new 120GB model) is a good player. Sure, they could've revamped the flash-based model with a new nano-sized screen and slapped accelerators in all their models, but the players are nice. Offering FM Radio and a Wi-Fi marketplace alongside the regular slew of Music, Videos, Games, and Podcast support. Arguably, the only thing the Zune 120 lacks is an EQ and the ability for portable storage and the only thing, from a spec standpoint, that isn't on-par with the iPod Classic's is the Zune's battery life- but then it does have a much larger display and if you're constantly using the marketplace or watching videos/looking at pictures on that larger screen, that's to be expected.

I believe that the only thing keeping the Zune from doing well is Microsoft. The Zune is barely advertised and I have a friend who, like others, doesn't know the differences between the Zune and the iPod. She looked at the 120 and the Classic, looks at the prices and says "if they're the same price and the same storage, what's the difference?" People need to actually be made aware of the Zune, the way they're now aware of the Xbox. There should be [more] commercials, it needs to be made available in more than two countries, the red and blue versions need to be made availabled in stores, the software needs to be Mac-compatible.

The only thing this article tells me is that in a limited market of only two countries, a brand that is barely advertised did badly in the midst of a weakening economy against well-established, international brands.

[AaronCT123]

Apologies on the repeated line in that post. This is my first CNet post and I'd thought there'd be an edit option.