Microsoft Officially Introduces “Zune” MP3 Player To Compete With iPod
Posted November 14, 2006 12:00 pm.
This article is more than 5 years old.
In the old business battle of David vs. Goliath, it’s an interesting switch.
This time, Microsoft is playing David.
The biggest computer company in the world officially launched its much vaunted Zune MP3 player Tuesday with the full knowledge it has a very long uphill climb to best Apple’s market leading iPod.
Microsoft has a history of underestimating trends then jumping on the bandwagon once they’re established. It seemed to have missed out on the explosion of the Internet, only to respond with various products and sites in an attempt to catch up.
It fell behind in the video game explosion, before introducing the Xbox.
And now it’s trying to compete in the realm of online music. Apple’s iTunes remains the biggest online music option on the planet, and its best selling iPod dominates world sales.
Does Bill Gates’ firm believe it can really make inroads against a player that’s in more than 30 million homes?
Not initially.
“It’s not even going to give the iPod a bad headache for the time being,” believes analyst Michael Gartenberg. But he claims Microsoft’s marketing know how and its deep pockets may eventually take a bite out of Apple.
A lot depends on how consumers respond.
The Zune is the size of a deck of playing cards, has an iPod-like scrolling wheel, a slightly larger 3 inch screen, and a little more heft. It comes preloaded with several tunes and videos already on it, and boasts 30GB of storage, enough for 7,500 songs, 25,000 pictures or about 100 hours of video. It has a built in FM radio. And it sells for about $250 US.
But Microsoft is sure it has an ace up its sleeve. The machine can wirelessly transfer music and pictures from other Zunes, something Apple’s device can’t.
C.E.O. Steve Ballmer thinks it will at least get the player noticed.
“You could say, ‘yeah we’re starting out umpty-ump millions players behind’ or you could say ‘hey look, there is a whole new paradigm that is going to happen in this business and we’re jumping in at the beginning,”‘ he explains.
“Who knows when Apple will jump in? It’s a good company. I’m sure it won’t take (Apple) forever.”
But it seemed to have taken the software colossus forever to come onboard. “The name of the game in technology is change, and if Microsoft doesn’t invest and adapt they’re eventually going to be irrelevant,” warns analyst Toan Tran.
“We’re not in this just because it’s fun to do,” concurs Robbie Bach, president of Microsoft’s entertainment and devices division. “We think we can make good money doing this.”
He’ll know for sure soon – the Zune went on the shelves in the U.S. Tuesday. It won’t be available in Canada until next spring. And for all its promises, it comes with one other interesting anomaly that may say more than any music played on it.
The Zune pointedly does not include the name “Microsoft” anywhere on it. Which means you’ll get the marketing muscle but not the enmity that sometimes accompanies the giant company’s brand.
