Zune device: We hardly knew ye?
Despite the major September release of Zune software 3.0, there didn’t seem to be a single new feature announced or products added to the Zune line at the recently held CES. From the keynote blogs I watched, it appeared MS only dedicated about 3-4 minutes to the Zune. To put it simply, it looked like the product was in trouble.
The Financial Times all but confirms this in a recent article, which highlighted numerous difficulties Microsoft has been having recently in their major divisions. On the Zune and its difficulties gaining ground:
In digital music, meanwhile, Mr Ballmer seemed all but ready to throw in the towel on the Zune mobile device, which has failed to gain ground on Apple’s iPod. But he suggested that the focus of competition in digital media was moving onto ground that Microsoft understands well: software.
It’s no secret that the iPod is still the top guy when it comes to DAPs, but everyone knew it wouldn’t be easy. Ironically Apple itself has practically deserted active development of its own traditional iPod line to focus on the iPhone and iPod Touch, so now would seem a better time than ever to blow them away. But then the market would lead us to believe that the time for these single-purpose devices is all but over: “He [Ballmer] said that, with the market for dedicated portable media players in decline, the future lay in more “general purpose” devices – such as Apple’s iPhone and touch.”
While I won’t deny that the market is shifting towards these types of devices, I don’t think the hardware was really the problem here. Most people who picked up the Zune did it for the sleek hardware, and put up with the decent (but not great) software. I maintain that it’s a great device, it just hit a few years too late and wasn’t fresh enough to harm the iPod. If Microsoft is now planning to try and make the Zune a software brand instead of a device, then they got a lot of work to do. Battling the behemoth that is iTunes will probably be as difficult as battling the iPod itself. Besides I haven’t heard of any real success with Windows Media Player and its “Plays for Sure” software line. They really need to come on much harder than they currently are.
They’ll more than likely support the product with updates for I’d presume another year or two but really, they’ve put up the white flag already. One of the ZuneInsider guys gave a pretty clear “non-confirmation confirmation” in response to the FT article:
We’ve been saying for some time that our strategy for Zune is to provide a great entertainment experience across multiple screens and devices. Software and services have always been at the core of this strategy – this is nothing new. Today, this means a great Zune experience on the PC and portable Zune devices, and as we have said before we think it makes sense to extend that experience to other devices in the future.
I’ll say it again. If the only ace up their sleeve is extending the software to other devices, I can’t see the waters changing. Microsoft needs to take a break from this side of the market for now and come back when they can really make a difference or open up the market. Everyone is still playing ball in Apple Stadium and drinking the Apple Juice, there’s no way they’ll make a dent unless they can completely blow that away (kind of like what Nintendo did going from the Gamecube to the Wii).
