Microsoft To Exit the Zune Business? 361
thefickler writes "According to Microsoft's quarterly filings to the Securities and Exchange Commission, the Zune platform experienced a revenue drop of 54 percent, or $100 million. This compares to relatively healthy sales of the iPod, which were up 3 percent in the same period (though revenue did drop by 16 percent). Obviously, with the recent job cuts at Microsoft's Entertainment and Devices Division, pundits are wondering how soon until the Zune also gets the chop. As one pundit wrote: 'Microsoft, by now, should be realizing that it's never going to be as "cool" as Apple, so why waste its time with the Zune where it has no competitive advantage?'"
Not even the tatoo guy (Score:5, Informative)
Re:It's not just about "cool" (Score:5, Informative)
Really? Because the only phrase in that drivel you just wrote about the zune was wrong "They shipped a Zune that was less feature-filled than the then current iteration iPod." BS! Bigger screen, FM radio, and Wifi. The thing the ipod actually did have that the zune didn't was a shiny surface on the back. That's literallly it. The zune even had better quality audio. Buy music from FM radio? Geat idea.
Re:this comes as no surprise... (Score:2, Informative)
It was a bad product -at- day one, but it's gotten far better since. It has some very impressive features which I haven't seen in any other MP3 player at that price range, and upgrading older versions to support all the features of the newer ones is something I wish more companies would allow. If they'd just open the fucker up and lose the DRM...
Re:Zune is much better than iPod (Score:3, Informative)
Agreed. People who badmouth the Zune have either never owned one (the "lol zune sux!" crowd), or have only used the original 30 GB model (aka Toshiba Gigabeat) with 1.x firmware. The second gen Zunes are fantastic and I have never regretted buying one (80 GB model) after owning several generations of iPods.
I love the FM radio as I listen to NPR at work. I love the wireless sync and marketplace, which EVERY Zune model can use, but only the iPod Touch and iPhone are able to do. I love the big, vertically-oriented screen. I love the clean navigation menus on the device. I love the ZunePad, which is quicker and way more intuitive to use than the gimmicky Click Wheel.
I also really love the Zune software. It made me appreciate just how bad iTunes really is, which most seem to be in denial about, but ignorance is bliss as they say. I have every intention of buying another Zune when this one no longer serves my purposes.
If people would get over their prejudices about Microsoft and actually try the Zune, I'm sure they would be impressed by it. MS even deleted their own name from the product (it appears only at the bottom of the "About" screen) because of the popular belief that MS can't put out a "cool" product.
tl;dr: zune > ipod
Re:So the revenue from iPods fell 3%... (Score:5, Informative)
iPod sales (22.7 million) went up 3%, revenue ($3.3 billion) was down 16% compared to last year. That would suggest more people were buying this year but were buying the cheaper models compared to last year.
Zune on the other hand drop 54% in revenue ($100 million) due to drop in sales. There's no other breakdowns. Considering the whole division was profitable by only $151 million and the Xbox made up $135 million of that, the Zune doesn't generate much profit for MS whereas the iPod is substantial money maker for Apple.
Re:Just because (Score:5, Informative)
Here is a list of features I've found very useful on my iAudio G3 over the couple years I've owned it. Some seem obscure, and I never knew about them until I looked for them because I found a need. (I'm not saying the iPod lacks these features, since I just don't know).
Plus I have it set to work as a USB drive, and show/navigate my tracks via the directory structure (no ID3 info required). Just how I like it. And it runs on a standard AA for about a month of my typical usage.
So, I prefer lots of options, even if I never need some of them.
Committees aren't cool (Score:3, Informative)
Then it hits committee. Share music? That's illegal! Oh wait, it depends? Well, even if it's not illegal, we need to monetize this feature. Just like "Vista-Capable" was a good idea, until they decided to change the standards to suit their suppliers. Xbox 360? You're on the money. Committees don't see shifts. People do. And when you give a committee lots of money and say "make version II", you see something very expensive. Netbooks? Microsoft saw them coming. That's why they came up with the UMPC specification. Oh wait, you mean something cheap? Again, committee think. It's why GM cars have all the cupholders.
Re:I used to be just like you. (Score:2, Informative)
I have a brown Zune too. When I first got it, I absolutely loved it. 30 GB of storage, ability to play photos, videos and music either in headphones or on my TV. Then a strange thing happened... Last September I wanted to get a mobile device that allowed me to surf the web. I saw my friends' iPhones and thought it was a good experience. "No problem" I thought. I'll just check out this Windows Mobile 6 stuff. I started on a hunt to find a non-iPhone that browsed the web as well as an iPhone. I went to AT&T stores (since I had their service already though my contract had expired), Verizon stores and Sprint stores. At the time, every other phone's web surfing was a J-O-K-E compared to the iPhone. A joke. I can't tell you how much it pains me to say that, since I am in reality a Microsoft fan and have used their development products professionally for over a decade and a half.
So I got the iPhone 3G. My Zune was then in the glove compartment of my car for a few months. I pulled it out a few weeks ago to try out the Zune games that seemed to be taking off. What I used to think was a sleek, intuitive interface on the Zune now looked clunky. The entire device actually felt cheap. The Zune hadn't changed though - I did. I got used to the iPhone. But anyway, I upgraded my Zune firmware, installed the Zune Games and actually tried the default ones out. Texas Hold'em was actually fun. But man, the experience is nothing - NOTHING - like the iPhone.
I guess I'll try selling my brown Zune on eBay before they become totally worthless.
The iPhone's web browsing advantage now only comes from its capacitive touch screen. Its low resolution and use of Safari cripple it compared to 640x480 phones running Opera Mobile.
Still, the capacitive touch is a big deal. It makes the iPhone feel very smooth, even as your friends' phone loads pages more correctly and faster.
Re:this comes as no surprise... (Score:2, Informative)
"So I'm not seeing a clear win for Apple in DRM here.
But I think the most fundamental argument is: It sounds like you're saying Apple has "good DRM." Can such a thing exist?"
Apple DRM does not impact the average user in any way. They don't see it. It doesn't get in the way of the average user enjoying their music and video purchased from iTunes.
They have one computer and one iPod.
The one talks to the other.
MAYBE they also synch to the computer at work.
MP3 files and converted to MP4 video plays just fine on the iPod.
The iPod itself and the iPod software on the computer do not forbid you from playing non-DRMed files, nor prevent you from transferring files to the the iPod.
iTunes Store. "Oh, I want that song!" Two mouse clicks later, it's on the computer. Next time the iPod is docked, it automatically copies to the iPod. The DRM did not get in the way in any form.
If you download from the iTunes Store in Apple Lossless and then burn a Music CD, there is no loss in quality. You can burn 10 CDs of the same playlist. Swap the order of two files and burn 10 more.
As for backup of all your purchased music/video files. You DO use Time Machine, right?
Remember, Slashdot geek:
YOU are NOT the target audience for the iPod.
YOU have NEVER BEEN the target audience for the iPod.
YOU will NEVER BE the target audience for the iPod.
Re:Just because (Score:3, Informative)
Technically, no the files are not "DRM wrapped" as that would modify the files themselves. Instead, they go into a special folder on the Zune with associated metadata that limits the number of times you can play each song.