October 2, 2007 7:15 PM PDT

Microsoft unveils revamped Zunes

Microsoft unveils revamped Zunes
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October 2, 2007
Microsoft has unveiled the second generation of Zune digital music players and will offer consumers 1 million unprotected songs on its online music store.

Microsoft announced on Tuesday that it will offer three new models of the Zune in November, including two equipped with flash memory. The 4GB and 8GB versions are iPod Nano look-alikes that will sell for a suggested retail price of $149 and $199 respectively. An 80GB player equipped with a hard drive will sell for $249. The pricing scheme for the devices exactly mirrors that of Apple's iPods.

Some of the other changes include a complete overhaul of the device's software and a redesign of Marketplace, Zune's music store. Other interesting features include wireless syncing and the new Zune Pad, a touch-sensitive technology that enables users to slide their finger across the main navigation button instead of always having to click.

The 4GB and 8GB models represent Zune's first foray into flash-based players and they will be offered in a palette of red, pink, black and green. The 80GB features a 3.2-inch screen and will be smaller and thinner than the original Zune 30GB player. The software upgrades will also replace the software in the 30GB models.

Click for gallery

Zune devices will automatically sync when connected over home wireless networks. The feature is designed to ensure that owners always leave home with the latest content, such as podcasts.

The move to provide unprotected MP3 music on the Zune music store is unprecedented for Microsoft but does not come as a surprise. Not only is the company one of the major providers of digital rights management software, but executives there slammed Apple and its CEO Steve Jobs last February when he called on the music industry to abandon DRM.

Microsoft then reversed itself in April, saying it would eventually sell unprotected songs on Marketplace.

While 1 million songs may sound like a lot, Microsoft isn't saying just how much of that music is coming from the four major music labels. Already, eMusic offers more than 2 million unprotected tracks from mostly independent labels. In May, Apple announced it had partnered with record company EMI to sell DRM-free music on iTunes. Apple hasn't said how many unprotected tracks on iTunes are available.

Susan Kevorkian, an analyst with IDC, said that Microsoft is more interested in selling music players than it is with providing DRM software. She said that Microsoft began scaling back its DRM efforts last year in order to throw more resources at improving the Zune.

But are the new products enough to reel in Apple? The newest Zunes are a step up, but Microsoft watchers don't think they offer anything better than the iPod.

"I would say they are holding their own," Van Baker, a research vice president with Gartner, said of Microsoft's venture into the music category. "Within that group (vying for the approximate 30 percent market share that Apple doesn't own), I'd say they are a contender. Are they gaining on Apple or making up ground? I don't think so."

What's new with Zune?
The problem is that the newest Zune models don't offer anything demonstrably better than the iPod, the analysts said.

More than a year has passed since Microsoft began developing the music player and the company is still without a comparable video store to iTunes. Zune's Marketplace will begin offering music videos, but it is still without TV shows. While Microsoft crowed about its new touch-sensitive navigation button, the new iPods come equipped with touch-sensitive screens.

And the new iPods now offer Wi-Fi--a feature that was supposed to set the Zune apart.

Kevorkian said her company last year had anticipated "a quicker refresh" to the Zune. She said that some of the reasons that may have slowed Zune efforts may have been some key departures in the unit's management and that it was forced to rush the launch of its debut models.

"What we are seeing now are important incremental changes," Kevorkian said. "What we're waiting to see is more revolutionary changes, such as the ability to access the Zune music service via Wi-Fi. We think Microsoft will be a strong player in the portable flash player category. They have diversified their player platform and undertaken a major overhaul of their software, which is important way to development. There are people looking for an alternative to Apple, and Microsoft is likely going to win market share from other Windows-based media players. They are just behind right now."

Microsoft has always said that the Zune was a long-term project, predicting in 2006 that it could take years and hundreds of millions of dollars to go toe-to-toe with Apple. The company surpassed its initial sales goal by selling more than 1 million Zunes by June.

"What we've done in the past year is establish the Zune brand," said Jason Reindorp, marketing director for Zune. "It's starting to mean something to people. That isn't easy to do. Microsoft had a very realistic view of what it would take to get into the marketplace and differentiate itself and be successful. We look at these things in terms of years, not months."

Interestingly, Microsoft usually likes to compare its efforts with Zune to that of the company's foray into the video game sector. With the Xbox, Microsoft seized market share from Sony and Nintendo very early. Are there any similarities between Xbox's early efforts and Zune's?

"No, absolutely not," Baker said. "Xbox had Halo. If it wasn't for Halo, Xbox probably wouldn't exist. But that's the game industry, where one incredible franchise can drive an entire platform. Against Apple, Microsoft is up against a dominate service worldwide and it's going to be tough to knock them down if Microsoft doesn't bring something uniquely different to market. If Microsoft can't do that, they can only compete on price and that only buys so much time."

See more CNET content tagged:
Microsoft Zune, digital-rights management, Apple Computer, music player, Apple iTunes

Add a Comment (Log in or register) 250 comments (Showing first 20 comments)
No features comparable to Ipod?
by zebwinz October 2, 2007 7:57 PM PDT
The writer states that "While Microsoft crowed about its new touch-sensitive navigation button, the new iPods come equipped with touch-sensitive screens." That's a little disingenuous, be it that he's comparing the Zune 2's to the iPod Touch, not the Nano and Classic that they are competing against. I for one am ready to sell my Nano(last generation) and pick up one of these Zunes.
The wireless syncing is awesome, podcast support was definitely needed, and it sounds like the sliding touch pad is similar to the scrolling on the iPhone or iPod Touch, which is the only part of the touch interface that I dig.
Reply to this comment View all 3 replies
Laughable
by MaLvaDo39 October 2, 2007 8:06 PM PDT
Microsoft and it's "me too" products.
I don't see how you can take this company serious.

No innovation
Simply take their billions and copies the successes out there.

*sent from a Microsoft free house* :)
Reply to this comment View all 2 replies
OMG! ROFLMAO
by deanrd7 October 2, 2007 8:22 PM PDT
It's a good thing Microsoft has money to blow. If this were their
main focus they'd be bankrupt.
Reply to this comment View reply
Dang! ...and Vista's so full of DRM.
by Maccess October 2, 2007 8:39 PM PDT
Active Desktop in Windows 98.
WMP, etc in Windows Millenium.
Verification and Windows Security Center in XP.
DRM in Vista.

All this non-functional junk built into the operating system. What's a systems admin to do?
Reply to this comment View all 2 replies
New Generation of Oldsmobile
by sargear October 2, 2007 8:42 PM PDT
"new generation of Zune"
The New Generation of Oldsmobile, dead before they ship them out the door.
Reply to this comment View reply
Zune vs Sandisk Sansa
by john55440 October 2, 2007 8:52 PM PDT
The real competition is Zune vs Sandisk Sansa, not Zune vs iPod.

Right now, Sandisk is a strong #2 in overall MP3 player market share.
Reply to this comment View all 2 replies
Wow, Zune 30 gets the new features, too?!
by toosday October 2, 2007 9:00 PM PDT
Now that's what I call support for your community! Heck, I have to
upgrade my 2-year-old iPod just to get gapless playback!

Take note, Apple. People don't like being shanked.
Reply to this comment View reply
Apple abandoned the niche, Microsoft fills it
by Vegaman_Dan October 2, 2007 9:05 PM PDT
Apple pulled the most popular iPod model they have, the tall and slim Nano, and replaced it with the fatboy- a wide and short version which hasn't had a good review yet from even the pro-Apple sites. The common theme is that the features and case size that made the Nano so popular was the very thing that Apple dropped on their new model.

Then Microsoft releases a model that fills the exact niche that Apple left for a tall and narrow player.

The timing is curious, but- yeah. I don't understand Apple's choice to drop their best selling model in favor of the fatboy. This means people liked that form factor only have the new Zune to look to instead.

On the plus side, the red Zune looks pretty good. At least there doesn't appear to be a brown version. Whew!
Reply to this comment View all 5 replies
Wheres the innovation? Its nothing original.
by ServedUp October 2, 2007 9:09 PM PDT
Couldn't they come up with something different.
There just mirroring Apple. Thats so lame.
Even down to the shiny product shots.

All those millions just to create another iPod copycat.

They'd be better off donating the cash they had spent to the Gates
Foundation. Atleast that would be genuine.
Reply to this comment View all 2 replies
Agreed, the story doesn't compare apples to apples
by shahnhogan October 2, 2007 9:13 PM PDT
The only iPod not iPods that have WiFi is the touch (for $399 - the closest Zune is $150 cheaper). The 80GB has a larger screen, all models have FM radio, and wireless sync to PC.
Reply to this comment
This hilarious
by yaZULU October 2, 2007 9:16 PM PDT
Personally, doesn't do anything for me except for the font used and
the glowing selection, apart from that it looks like the front of a
truck hit mickey mouse and splattered him across the front. It
doesn't really have any "WOWOWOWWOWO OMG!" features like a
totally touch sensitive face. wireless synching is good but not
really that cool. PS in the 3 minutes since i read and commented
soo many posts have been made: dig in fanboys.
Reply to this comment
Sounds good, except....
by Zentheoutcast October 2, 2007 9:19 PM PDT
I love all of these new features; 80 gigs? sweet. wireless syncing? awesome. DRM-less marketplace? thank god.

...except the touch-sensitive controls. Why Microsoft? Why?? Why would you fix what's not broken? Now, I can't speak for everyone else, but I for one LOVED the fact that the Zune didn't have a touch-sensitive control. These types of controls are wrought with frustration, missed buttons, and pocket presses. Why couldn't you keep the lovable, FUNCTIONAL click-button D-pad?

I'm still going to redeem my accidental Circuit City warranty and get the Zune 2 when it launches (I get the feeling my Zune might have a timely "accident" right about then). I'm giving you the benefit of the doubt here, Microsoft. Please don't let me down.
Reply to this comment View all 2 replies
MMMM...just love my portable music players with DRM...
by furball123A October 2, 2007 9:33 PM PDT
Let me see...I can buy a Chinese MP4 player which looks like either a Zune or an IPod for less than 1/2 the cost from either Ebay or other online merchants. Zune has so many DRM locks...along with Microsoft needing to pay a royalty to Universal & others. The new IPods tied to ITunes & unusable with 3rd party software.

As I said...can get a Chinese MP4/MP3 player which allows me to have an FM radio built into it...no DRM garbage...can watch movies...read books. All of this for less than 1/2 the cost of the two DRM laden players from two major companies. These products even look close enough to the Zune & Ipod that unless you look closely...you can't tell the difference. Yeah...get I know where my money is going to!!!
Reply to this comment View all 2 replies
Son O' Zune: We Can't Stop Barfing !
by Sumatra-Bosch October 2, 2007 9:56 PM PDT
Ballmer told one to his kid at gunpoint!
Reply to this comment
What no brown?
by hal Summers October 2, 2007 10:14 PM PDT
I don't really like the puke green as much as the turd brown.
Reply to this comment
Changes
by lyricsenergy October 2, 2007 11:53 PM PDT
Changes include a complete overhaul of the device's software and a redesign of Marketplace, which will offer 1 million unprotected songs.
http://www.lyricsenergy.com/lyrics/m/michael-jackson/index.php
http://www.lyricsenergy.com/lyrics/m/michael-bolton/index.php
Reply to this comment
Why does everything from MS get thrown under the bus by Cnet ?
by deitiphobia October 3, 2007 1:05 AM PDT
Ipods can't sync wirelessly and don't have any of the innovative "social" aspects of the Zune. The new software looks amazing. Find the UI videos on the net...you will be surprised. The Zune won't require the use of two hands like the Ipod Touch does and besides if you compare dollar to dollar a more acurate comparison would be to the Ipod Classic.

All of these Apple Zealots can't even appreciate a fine product. It may not be the Ipod Touch...but it doesn't have to be. It's still a damn good product with great features at a great price.

Now I wonder if the Zune will support Audible files now???
Reply to this comment View all 2 replies
Zune: Almost As Popular as Larry Craig !
by Sumatra-Bosch October 3, 2007 4:31 AM PDT
Or Charles Manson!
Reply to this comment
Why are the colors so putrid?
by McBlayde October 3, 2007 4:54 AM PDT
Menstrual red, puke green, biohazard pink...

ugh.
Reply to this comment View all 2 replies
Zune Marketplace has 3 million tracks...
by richto October 3, 2007 5:31 AM PDT
Rather misleading just to mention the DRM free tracks.

Over 3 million tracks
Over 1 million DRM-free MP3s that you can play on your Zune or any other digital media player
Thousands of music videos
Over 1,000 free audio and video podcasts
For about the price of a CD per month, you can buy a Zune Pass subscription to download whatever music you want for a flat rate.
Reply to this comment View reply
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