Is Zune doomed from the start?

[lpxxfaintxx]

Is Zune doomed from the start?

It’s beginning to look like Microsoft’s Zune player is more hype than substance and may be a dud before it gets out of the gate. Originally the ‘leaked’ specs of the product were impressive, but as we get closer to the release date of the product the market is getting less and less impressed with what it sees. Now according to analysts it seems that the long awaited Zune player is little more than a repackaged Toshiba Gigabeat player – which itself has only enjoyed marginal success.

Analyst Shaw Wu at American Technology Research reported that - Â’While we have great respect for Microsoft, we are frankly under whelmed by the much-hyped Zune device, it appears that the Zune is essentially a repackaged Toshiba Gigabeat that has seen limited success.Â’

 In his research report, Wu states that Zune shares similar characteristics to other would-be iPod contenders, which have not managed to eat away at AppleÂ’s massive share of the digital media player market. In particular he notes that the Zune replicates the ‘lookÂ’, but not the ‘feelÂ’ of the iPodÂ’s thumbwheel.

It neither rotates, nor is it touch sensitive – effectively it’s a cover for the four nav buttons found on cheaper players. As such the elegance of the navigation found on the Apple iPod is missing, so the experience is lower grade. Wu goes on to say that Apple has patented most of the unique elements of the iPod and that getting around these patents may be impossible in the short term. The other elements of the success of the iPod are its eco-system – the so-called ‘halo effect’ that allows customers to select from thousands of additional accessories that attach and enhance the iPod.

Resellers love these items as they generally have higher margins and encourage ‘up-sell’ and return purchases. Of course the success of the iPod itself is another reason that pushing against it will be a formidable challenge – with market share comes economies of scale and sheer availability of choice, it will be hard for anyone to dislodge an installed base of 58 million iPods and 300 million iTunes users.

The more likely losers from the launch of Zune will be Creative, Sony, Sandisk, Samsung and iRiver. The fact that the Zune will be initially manufactured by Toshiba may mean that the other players in the market will target Microsoft directly, get pushed into joining forces, or – as in the case of Creative – join forces with Apple and focus on increasing the value of the Apple eco-system. Either way the sure winner will be Apple.

A final thought for those of you convinced that Microsoft will seize the day – over two years ago Microsoft attempted to jump past the audio end of the player market with the launch by various Korean manufacturers of its Portable Media Centre standard, based on Windows Media Player 10 – this has effectively been consigned to the gadget junk heap in the sky.

[putis]

I'm glad I'm not the only one who was let down by the pseudo-wheel on the Zune.

[h2a2n]

Zune may get a shaky start, but just remember: it's MICROSOFT.

[zunemax]

The Zune is a family of devices and they will offer more than this one unit. They will start slow and build up. They have a 5 year plan on taking iPod out.

[MovieCutter]

Originally Posted by zunemax

The Zune is a family of devices and they will offer more than this one unit. They will start slow and build up. They have a 5 year plan on taking iPod out.

Really? They have an AWFUL way of demonstrating the beginnings of that strategy. I really hope the rest of their plan doesn't include announcing products right after a major Apple announcement without announcing specs or pricing and not making it available immediately thus taking full advantage of any free press they may be getting. These guys bellyflopped. They shot their load off way to early and they're ultimately going to pay for it in the form of very slow if miniscule sales.

Originally Posted by h2a2n

Zune may get a shaky start, but just remember: it's MICROSOFT.

And that means what? 5 years between unstable and buggy upgrades that are overwhelmingly overpromised and underdelivered? Don't get me wrong, I'm rooting for the Zune. Competition is a good thing. Assuming Apple doesn't see this product as a complete joke and an insult to the marketplace, tney could use a bit of a spark lit under their ass.

[lpxxfaintxx]

Microsoft = Money

I'm not saying just because Microsoft has a lot of money (and I mean a LOT), they'll beat ipods just like that, but having more money is definately an advantage.