September 5, 2007 7:22 AM PDT

As new iPods loom, Zune gets price cut

As new iPods loom, Zune gets price cut
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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.

See more CNET content tagged:
price cut, product life cycle, Microsoft Zune, Apple Computer, Microsoft Corp.

15 comments

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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
Posted by Penguinisto (5042 comments )
Reply Link Flag
Lost cause
"Then maybe, just maybe, Zune wouldn't be such a gawdawful last-place flop of a product."

Yes it would.
Posted by rcrusoe (1305 comments )
Link Flag
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.
Posted by ittesi259 (727 comments )
Link Flag
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.
Posted by aka_tripleB (2211 comments )
Link Flag
Pay us instead
I'll get a Zune, but only if they pay me to use it.
Posted by Xenu7-214951314497503184010868 (153 comments )
Reply Link Flag
Learn from Palm
Maybe Microsoft could partner with Palm on lessons on innovation learned. No wait, nevermind.
Posted by rcardona2k (318 comments )
Reply Link Flag
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.
Posted by justageek (8 comments )
Reply Link Flag
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.
Posted by ua_eng (16 comments )
Link Flag
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)
Posted by technewsjunkie (1265 comments )
Reply Link Flag
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.
Posted by Sumatra-Bosch (526 comments )
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