link Microsoft Corp. (MSFT) will stop introducing new versions of the Zune music and video player because of tepid demand, letting the company shift its focus to other devices, according to a person familiar with the decision. Microsoft will concentrate on putting Zune software onto mobile phones, such as those running its Windows operating system, said the person, who declined to be identified because the decision hasn’t been announced. Zune software lets customers buy songs and movies, as well as pay a monthly fee to stream unlimited music. Zune, introduced in 2006, never managed to break the iPod’s grip on the music-player industry and became the brunt of late- night talk-show jokes. Apple Inc. (AAPL)’s iPod led the market with 77 percent of unit sales last year, while the Zune failed to crack the top five, according to NPD Group Inc. By adding the Zune features to the Windows Phone software, Microsoft aims to gain ground in another challenging area -- mobile phones -- where it’s lost market share to Google Inc. (GOOG) and Apple. Microsoft, based in Redmond, Washington, declined to comment on plans for the Zune. “We have nothing to announce about another Zune device -- but most recently have introduced Zune HD to Canada via the Zune Originals store and remain committed to supporting our devices in North America,” the company said in an e-mailed statement. “We are thrilled by the consumer excitement for Zune across many new platforms, including Windows Phone 7 and Xbox 360. Our long-term strategy focuses on the strength of the entire Zune ecosystem across Microsoft platforms.” Beating the iPod? When Chief Executive Officer Steve Ballmer released the Zune more than four years ago, he predicted that Microsoft could one day overtake Apple. “We can beat them, but it’s not going to be easy,” Ballmer said in a November 2006 interview. At the time, Microsoft executive Robbie Bach, then president of the entertainment and devices business, said the company planned to invest “hundreds of millions” of dollars over the following three to five years to compete with the iPod. The company doesn’t detail spending on individual products. In 2009, Microsoft split the Zune team into software and hardware groups, letting the software people focus more on other platforms, such as phones, the Xbox video-game console and personal computers. The company touted the Zune software as a key feature in its redesigned Windows mobile-phone operating system when it went on sale in October. Zune HD The Zune’s last completely new hardware model, the Zune HD, was released in 2009. A version that featured more storage went on sale a year later. Microsoft will continue to sell existing versions of the Zune, the person familiar with the matter said. Microsoft shares rose 1 cent to $25.69 as of 4 p.m. New York time on the Nasdaq Stock Market. The stock has fallen 8 percent this year. Talk-show hosts such as Craig Ferguson and Conan O’Brien ribbed the Zune for being an also-ran. Ferguson said the device was Microsoft Chairman Bill Gates’s bid to “loosen iPod’s stranglehold on the iPod market.” “The Zune has all the features of the iPod except it’s not as good,” he said in 2006. “Plus it can only download recordings of Bill Gates singing.”
If the Zune didn't crack top 5, what was top 5? Is this counting all current iterations of Apple's personal media players? I thought the zune hd was surviving and besides Sandisk and Sony those are the only companies I thought was left.
I have had my 30 gig Zune for close to a year and it has been pretty solid. Granted, it is still a pain to move music around and I have been eyeing a 160 gig iPod for some time. But I find it hard to believe that after the iPod, there are 4 other products ahead of the Zune. They must all be Apple products.
I love my zune.... I don't have any problems moving music to it, but I do use the zune software (which is much less stress on my computer than iTunes) I may have to buy one of the HD's if they go on clearance... because they will still offer support and software updates even without the hardware being abandoned.
This is logical. With WP7, why go Zune? Unlike apple who has two carriers, WP7 will be on all carriers and essentially does the same thing and more... Honestly, if the iPhone was available on all carriers I could see them slowly phasing out the iPod touch as well...
I have the 120 GB Zune and it's been great. I also like the software. My only complaint is that when I had a Creative Zen I could plug it in to my computer and retrieve files like a hard drive. I can't do that with Zune.
"iPod" covers a lot of territory. According to Amazon, the bestselling mp3 players are: 1. Apple iPod touch 8 GB (4th Generation) NEWEST MODEL 2. Apple iPod touch 32 GB (4th Generation) NEWEST MODEL 3. Apple iPod shuffle 2 GB Silver (4th Generation) NEWEST MODEL 4. SanDisk Sansa Clip+ 4 GB MP3 Player (Black) 5. Apple iPod classic 160 GB Black (7th Generation) NEWEST MODEL 6. Apple iPod touch 64 GB (4th Generation) NEWEST MODEL 7. Zune HD 32 GB Video MP3 Player (Platinum) 8. Apple iPod nano 8 GB Graphite (6th Generation) NEWEST MODEL 9. Apple iPod nano 16 GB Graphite (6th Generation) NEWEST MODEL 10. Coby 4 GB Video MP3 Player with FM Radio (Black)
I liked their hardware, but good lord their syncing software was HORRIBLE. I bought the first generation one on Woot a few years back, my first woot purchase actually, and it was solid, but their syncing software BLOWS, iTunes was much better. I hated the fact you couldn't make playlist with music thats on the player already. If only they had syncing software that was as good as iTunes, I'd would've stuck with it, but happy with my 120gb iPod Classic
really? When I made the switch to wp7 from my iPhone, the Zune software was the first thing I liked. Different strokes for different folks I guess. Zune Pass 4 life.
yea, that annoyed me the most, where I'd put songs in the Zune software, sync it, put the songs back on my external HD, plug the Zune back in later to make a playlist out of the songs that are ON my Zune not on my Zune sync software, and it won't let me, that pissed me off the most. I wished there was a iTunes-like alternative for the zune, but that never came out, hell I would've probably preferred using WMP, but that wasn't an option.