Blog Post

Zune: At What Point Do You Throw In The Towel?

Not me asking that, but Todd Bishop, the Seattle PI reporter, in an interview with Robbie Bach, president of the company’s Entertainment & Devices Division, after yesterday’s announcement of new Zune launches, and on the day when Apple launched its new iPod Nano. So first, whether the new Zune will sell more, Bach says: “The answer is yes, it will. It will help us in the device category. We think that will continue to grow the device category. But it also helps us across connected entertainment, because music is not something that’s just isolated to portable devices. It’s things people want to experience on Xbox and on the PC and mobile phones and other places. So we think of this, as I said from the very beginning, a long-term investment.”

And then the question: At what point do you throw in the towel and try a different strategy? A valid point, and Bach said that being part of the hardware is important, and it will continue it, but, “You know, having said that, software and services are what’s going to be ultimately the differentiator in this space. So we’ll continue to invest there as well.” Methinks the new Zune will certainly sell more in the next year than it has in the last couple of years, with the new Wi-Fi and radio song tagging features…I hope they try and continue to develop alternatives to iPod.

5 Responses to “Zune: At What Point Do You Throw In The Towel?”

  1. "sock puppet"…for Microsoft? Really? Then it's a sure bet that Rafat is a classic AAPL fanboy writing a piece titled "Zune: At What Point Do You Throw In The Towel."

    Zune's a great product, which worked flawlessly from day-1. I have 3 iPods, including the new touch – and all of them suck in terms of manufacture and operational quality.

  2. I got one of the original brown Zunes as a gift. It's the model that feels like a brick. Although it's not svelt, I found I really liked the large screen, the personalized background, and the device software. And when the second generation Zune came out, I really liked that even my old Zune got the new software — and I liked my old Zune even more.

    Now that the 3rd generation is out, I was very happy to see in the MSFT press release that they will make the "Wi-Fi connection to Zune Marketplace" and "Buy From FM" features available as a software update, too! These are very cool features — a great deal for consumers and much appreciated.

    I'll probably buy a new Zune soon anyway to get the larger storage capacity, but I really appreciate how Microsoft making very significant feature upgrade available to all their users.

    Thanks Microsoft!