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Microsoft abandons Zune hardware.

Discussion in 'BBS Hangout' started by Xerobull, Mar 15, 2011.

  1. Xerobull

    Xerobull You son of a b!tch! I'm in!

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    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.”
     
    #1 Xerobull, Mar 15, 2011
    Last edited: Mar 15, 2011
  2. vinsensual

    vinsensual Member

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    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.
     
  3. Invisible Fan

    Invisible Fan Contributing Member

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    I'd jump on a clearanced Zune.

    55 dollas
     
  4. Poloshirtbandit

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    *pours out some liquor for Zune* :(
     
  5. Manny Ramirez

    Manny Ramirez The Music Man

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    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.
     
  6. Dairy Ashford

    Dairy Ashford Member

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    "Whyyyy'd you ha-a-aaave to-go-o, so Zu-u-u-u-unnnnne?"
     
    2 people like this.
  7. Hayesfan

    Hayesfan Contributing Member

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    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.
     
  8. Pizza_Da_Hut

    Pizza_Da_Hut I put on pants for this?

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    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...
     
  9. Poloshirtbandit

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    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.
     
  10. A_3PO

    A_3PO Member

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    A tree falls in the forest.
     
    1 person likes this.
  11. Dave2000

    Dave2000 Contributing Member

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    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
     
  12. Pizza_Da_Hut

    Pizza_Da_Hut I put on pants for this?

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    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.
     
  13. RudyTBag

    RudyTBag Contributing Member
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    I like the Zune better than the Ipod, actually...
     
  14. Dave2000

    Dave2000 Contributing Member

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    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.
     

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