ie8 fix
madison

Hardware 2.0

Adrian Kingsley-Hughes

Report claims that Zune is dead ... and I'm not surprised

By | March 14, 2011, 3:12pm PDT

Microsoft is pulling the plug on Zune hardware following what is described as “tepid sales,” according to a report by Bloomberg.

According to an unnamed source talking to Bloomberg, Microsoft will instead concentrate on putting the Zune player onto Windows Phone handsets.

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.

I’ve reached out to Microsoft for comment.

If Zune is indeed dead, I’m not surprised. It was an odd device in many ways, born as a knee-jerk reaction to the dominance of the iPad, but by that I don’t mean to say that it was a bad player, Just odd. The odd brown shell (which seemingly was the most popular) was an interesting color for Microsoft to choose (note that Apple never bought out a brown iPad …). The odd sharing feature built into the player was an interesting idea but demanded that your friends have Zunes too in order to make use of the feature (in other words, it was utterly useless to most users). Then there was the odd marketing strategy that meant Microsoft doesn’t sell the Zune outside of the US and Canada. I still can’t fathom out why Microsoft never took the hardware global.

But the most significant aspect of this report, if correct, is that Microsoft is willing to back out of a significant market and hand more market share to Apple. It’s one thing for Microsoft to lag (significantly) behind the Curpertino giant, but another for it to back out of the market altogether.

Well Zune, if you have been ‘Kinned’ then that’s sad … but I doubt that you’ll be missed.

[UPDATE: This in from a Microsoft spokesperson:

"We're absolutely committed to providing the best movies, music, and TV show experiences through Zune on Xbox, the PC, Windows Phone 7 and Zune devices. We'll share more information about the evolution of the Zune entertainment service and Zune hardware as future plans develop."

No confirmation, no denial.]

[POP QUIZ: Name one mass-market non-iPod portable music player ... go!]

Kick off your day with ZDNet's daily e-mail newsletter. It's the freshest tech news and opinion, served hot. Get it.

Topics

Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology.

Disclosure

Adrian Kingsley-Hughes

All opinions expressed on Hardware 2.0 are those of Adrian Kingsley-Hughes. Every effort is made to ensure that the information posted is accurate. If you have any comments, queries or corrections, please contact Adrian via the email link here. Any possible conflicts of interest will be posted below. [Updated: February 23, 2010] - Adrian Kingsley-Hughes has no business relationships, affiliations, investments, or other actual/potential conflicts of interest relating to the content posted so far on this blog.

Biography

Adrian Kingsley-Hughes

Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology -- whether that be by learning to program, building a PC from a pile of parts, or helping them get the most from their new MP3 player or digital camera.

Adrian has authored/co-authored technical books on a variety of topics, ranging from programming to building and maintaining PCs. His most recent books include "Build the Ultimate Custom PC", "Beginning Programming" and "The PC Doctor's Fix It Yourself Guide". He has also written training manuals that have been used by a number of Fortune 500 companies.

Adrian also runs a popular blog under the name The PC Doctor, where he covers a range of computer-related topics -- from security to repairing and upgrading.

84
Comments

Join the conversation!

Just In

RE: Report claims that Zune is dead ... and I'm not surprised
JoeHTH 22nd Mar 2011
@DonnieBoy Your mother should be slapped(hard) every day for the rest of her life for giving birth to a stupid bastard like you.
0 Votes
+ -
ipod not ipad
TheRackow 14th Mar 2011
You seem to have ipad on your mind... you have it everywhere it should be ipod.
out. The losses are just going to be too much to justify.
@DonnieBoy: MS spent hundreds of million dollars in Zune promotions before they are killing it now.

MS does not know what to do with its monopolistic money.
@DonnieBoy

I suppose you're still one of those people who has an iPod, an iTouch, an iPhone and an iPad 1 and 2.

I just use a WP7 phone and just like other smnartphones, it makes the music player redundant. Zune was useful for developing the UI and making iTunes look archeological, but it's integrated now, so thank you and goodbye wink
0 Votes
+ -
I believe you are misguided.
Mister Spock 14th Mar 2011
@DonnieBoy, why are you so worried about Android having competition? I, (as have many) have stated the fact that Android gre in popularity as it was the only smartphone OS that Verizon had.

With a few WP7 handsets coming to the CDMA market, could it be you are worried that it will take sales from Android?

Do you not state repetedly that "competition is good"?
@DonnieBoy
Well, go and tell it to 3.3 M subscribers (gestimated) of Windows Phone 7, http://thenextweb.com/microsoft/2011/03/11/did-microsoft-sell-877000-wp7-handsets-in-february/
@DonnieBoy - Yes I agree with you that Windows Phone will follow Zune. Don't forget Microsoft's Kin phones went the same way... to failure.

Microsoft tries to copy Apple's iPod and iPhone, but comes to market with products that are too late, and unfinished.
@DonnieBoy Here is this stupid a$$wipe.
Zune was not released outside of the USA and Zune Marketplace was only available in a handful of countries . . . and MS wonders why it "failed"!
0 Votes
+ -
Sure that was the reason
Richard Flude 14th Mar 2011
Maybe it failed because it was not as attractive as the iPod & iTunes and other competitors!

Why roll out to more countries a product that failed in it's home market?
0 Votes
+ -
@DonnieBoy
Your comments are pretty much inept. Alot like Google in the area of apps and music downloads.

You two make a great couple: Keep cheering them!
happy
@DonnieBoy Your mother should be slapped(hard) every day for the rest of her life for giving birth to a stupid bastard like you.
@ptorning go Balmer GO! Please go, just go and let Microsoft become the innovative creature it once was.
I think this is the right move. I expect the market for dedicated media-playback devices to decline precipitously over the next couple of years due to the fact that most cellphones and smartphones can now play-back media quite happily and people don't want, or need, to carry two portable electronic devices with them.

While there will always be a market for dedicated media-playback devices, I do not expect the market to be very large. For whatever market remains, there will only be wafer thin margins ... if any at all.

FAR better for Microsoft to focus on ensuring that Zune client gets into every Windows phone, tablet, laptop, desktop, media/TV experience, XBox, etc. and ensuring that the Zune subscription service gets more widely deployed globally.
Meanwhile, Apple is still making money hand over fist on portable music players. It may decline, but, Apple will still make a fortune, for the foreseeable future. Microsoft is getting out because they are inept and can not compete, no other reason.
0 Votes
+ -
But sales are declining, DonnirBoy
Mister Spock 14th Mar 2011
@DonnieBoy
So that money they are making "hand over fist" is not close to where it once was.
plain
@DonnieBoy
At least MS gave it a shot, and produced a nice piece of hardware with the ZuneHD (my wife really likes her's). The Market place is perfect for those that want a large libray of music without having to buy every song they want.

Now Google had Verizon all to themselves, with Android having good sales, yet they never could figure out how to create an iTune like offering as good as Apple's or Microsofts.

Talk about a big missed opportunity, I think Goolge gets the Village idiot award for not being smart enough to try when they had the chance.

But that's just my opinion.
0 Votes
+ -
I find myself in agreement, Mr.Zern
Mister Spock 14th Mar 2011
@John Zern
I would have to agree with you. Google had the perfect opportunity to move into the number two spot, yet they let it slip away.
I imagine they where so busy concentrating on trying to boost downloads from their App store that they may not have noticed the opportunity presented them.
@DonnieBoy,
"It may decline, but, Apple will still make a fortune, for the foreseeable future. Microsoft is getting out because they are inept and can not compete, no other reason."

Maybe the same should apply to Apple and the XServe. Microsoft make a fortune selling server/enterprise software, yet Apple stopped the production of the XServer. Like you said, Apple is getting out because they are inept and can not compete, no other reason.

IMO, MS made an intelligent choice in stopping Zune hardware, the same way Apple did with XServe.
@DonnieBoy
Having used my kid's ex-iPod touch for a few weeks now (he traded me his iPod touch for an Android phone) I have to say, I really like the device. My phone comes up for upgrade next month, and was on the verge of getting an iPhone. Then, I decided to get serious about putting my music on the iPod. GAAAAAAAHHHH iTunes SUCKS WIND. I have about 80GB of music stored, and while the Zune software makes managing it seemless (it does all that album art and track order stuff all by itself, no need for any intervention from me). But iTunes. CRAP! It set the songs in albums all out of whack (and no, shuffle was not on), and even though there was album art in the album directory (courtesy of the Zune software), it doesn't find it. Screw that. iTunes is too poorly made for me to use it to manage my music. I can't stand it, giving the iPod to the ol' lady, and let her pull her hair out with that required software.
@DonnieBoy
Hardly... The first iMistake was REQUIRING a credit ard just to listen to sample songs in iTunes, before any purchase is made -- that was simply iTarded, hence my iRage at the iCommunity for being so iBrainwashed. Besides, my Zune was far cheaper, just as good (and better in some ways from my nephews iPod), and I get more music than I care to listen to every month AND 10 songs to keep for ~$16 a month. Since I often buy at least 10 songs a month @ $1.29 from iTunes this service pays for itself and allows unlimited other music I like but dont want to purchase. iWin unlike with iTunes where iLost. iCould do this all iDay. happy

All joking aside, Zune is evolving like all technology has over the past few thousand years, it is an inevitability of everything. And yes, there will even be a day when the iPod/iPad/iWhatever is no longer; which I suspect is when sales begin to slow down and new versions are no longer sufficient to hold acceptable market share.

Such is life, sounds like once again the consumers will win in the end, as it should be!
0 Votes
+ -
MS took what could have been a good product
lostarchitect 14th Mar 2011
with good hardware and software, and ran it into the ground by not marketing it well and by not convincing people that it was as good as or better than an iPod.
portable music players. This much is true.
0 Votes
+ -
Cool anti-apple talking point #2 in reverse
fr_gough Updated - 14th Mar 2011
since the iPod only saw success because of Apple's marketing and not on the merits of the product, it must therefore follow that the zune failed because of lack of marketing and not on the fact that the product was a turd no one wanted.
0 Votes
+ -
As long as we are on talking points
Mister Spock 14th Mar 2011
@frgough@...
pro-Apple talking point number one: Other products fail entirely due to the fact that they are of inferior build or quality.
0 Votes
+ -
RE: Report claims that Zune is dead ... and I'm not surprised
partman1969@... Updated - 15th Mar 2011
@frgough@...
You must know that in audiophile circles that the iPod is the only one considered worthy of docks such as the Wadia and Peachtree which bypass the iPod's internal DAC in favor of even superior digital units before they get plugged into higher quality receivers or separates. The iPod is also more well endowed when it comes to direct docking connection with almost all aftermarket higher quality car audio gear. WIN, WIN ipod !!!
0 Votes
+ -
I didn't say that, nor am I anti-apple. n/t
lostarchitect 16th Mar 2011
@frgough@...
Ha ha ha ha... Loverock! Jabber! NonZewhatever! ha ha ha... lol... Zune.. The name itself is the killer [kills itself that is]. So you guys must be hiding! Oh, before NonZewhatever accuses of getting pleasure because some multi-billion dollar fruit company won, let me tell you it is so much fun to see you MS fanbois hide happy
0 Votes
+ -
The shareholders will not tolerate losses forever. They have 1.5 billion in advertising and the Nokia deal alone.
@DonnieBoy

Getting worried aren't you Donnie? First they bring out the best phone and then they link up with the world's largest manufacturer.

Cognitive dissonance must be killing you wink
0 Votes
+ -
Cognitive dissonance?
John Zern Updated - 14th Mar 2011
@tonymcs@...
Please, lets keep words and phrases to something he can understand?

As it is now his word of the day is "inept". He has a hard time coming up with things to say, we better keep it as simple as his posts so we don't lose him!
0 Votes
+ -
I'm sure you pray for that every night.
John Zern 14th Mar 2011
@DonnieBoy
Heaven forbid WP7 sales cut into Android once it gets released on a few phones at Verizon.

I'll stop by to watch you throw around some chairs!

happy
Nobody wants an MP3 player anymore... people want multi-function devices these days. Not surprising at all.

As a ZuneHD owner, I'm fine. I have my device, and I have my Zune software. So I don't care if they don't make any more.
@Droid101
"Nobody wants an MP3 player anymore... people want multi-function devices these days. "

How does that explain the billions that Apple makes from iPods?
bit as many are using their phones for music players, but, Apple will still make a fortune selling them for the foreseeable future.
0 Votes
+ -
@ptorning
Did not Apple report a decline in MP3 player sales?
plain
@Mister Spock

"Did not Apple report a decline in MP3 player sales?"

There may well be a decline, and that is to be expected with the proliferation of multi-function devices, but despite the decline, Apple still make a LOT of money from iPods at the moment and that will probably continue in the short term. In the medium term, I expect that mp3 players will see the end of their days.
@ptorning

But iPods include iPod touches, does it not? and that could be the reason why they're still making billions from "iPods"?
@spaceseed

I do not understand your point. How is an iPod Touch not an iPod? Why shouldn't the sales/profits etc from an iPod Touch be included with all other iPod sales?
@ptorning

Because it's a multifunctional device, and therefore it doesn't refute the point that the person who started the thread made?
Admit it, Microsoft is inept here.
@DonnieBoy

Is this your new word for the day? I'm afraid you're projecting Donnie.
0 Votes
+ -
And Google was smart enough to realize
Mister Spock 14th Mar 2011
@DonnieBoy
That enetring into the MP3/Music fray would be disasterous for them, so they chose not to.

What is sad is that people like you are happily ready to hand the MP3 player market over to Apple.
0 Votes
+ -
@DonnieBoy
I'm going to disagree. 12 or so years ago, Microsoft saw lots and lots of music listeners with Windows computers. It saw music companies who might buy Server software and Redmond asked them what they wanted. "We want people to pay us every time they play our record. We just got that for the internet." Well, metering every listen was not practical, people already owned disks, so subscription was seen as the way to go forward, and Microsoft got busy on the ways and means for temporary ownership of music, which we call subscription.

Apple, and maybe this is because this is the way Steve Jobs thinks about music, figured that easy to listen, easy to buy, was a more promising pitch for the music buyer. The record companies were reluctant brides and had to be wooed. Universal ( = NBC = MSNBC = relationship with Microsoft ) argued that it deserved a royalty for every iPod and pulled its music for a year. Apple didn't care and they didn't pay. Uni came back. Microsoft did give a dollar per Zune to Uni for a while.

Whether it was poor marketing, Microsoft's inability to leverage the desktop, the Zune music service being sort of subscribey, or that it was just too late for someone to steal significant mindshare from the iPod, the Zune never got traction.

But, if you go back to the late 90s, when the record companies say they want servers to enforce subscriptions, and you are Microsoft, software makers, what are you going to say "Bad idea. Not interested. Go build it with Linux." No. You say "Awesome! Let us put your genius into code." Some day you eat the bear and some days the bear eats you.
0 Votes
+ -
@Droid101
Everybody including the hanging judge loves excuses !
Apple isn't selling as many iPods as they did in the device's heyday; still, last quarter they did sell 19.45 MILLION iPods. This is a 7% decline from the same quarter a year ago, but it is still probably more than the number of Zunes MS sold all time, and in just 3 months. And tell me, who wants to go to the gym or go running/cycling and use their phone for music? Another thing, iPod touch has the functionality of an iPhone without the monthly fees, which is attractive to a LOT of people.
0 Votes
+ -
@Monkeypox
we will see fewer dedicated devices sold. However there are still some area's where an iPod Nano or iPod Touch will continue to make sense well into the future. The market is not dead it's just changing and part of that change is going to show up in more speciality area's and fewer MP3's sold but for sometime in the future iPods will still make Apple good money.

Pagan jim
0 Votes
+ -
@Monkeypox

Many users like myself who owned iPods in the past have transitioned over to the iPod Touch and iPhones. The iPod Touch today is selling just as well as the iPhone. The traditional iPods like the iPod Classic have declined as expected largely because of Apple's own doing. Cannibalizing their own.

Microsoft entered this market much like they've done with so many other markets. Without a solid long term game plan, just to clone whatever was popular at the time. But by entering with their own closed off Zune, they've also managed to kill off other smaller competitors competing against the iPod. Not only were these smaller competitors competing for attention against the iPod but now another strong brand in Microsoft (Zune). Then Microsoft just gave up after the damage was done, without a solid effort.

The Zune H/W has been dead for some time now btw.
0 Votes
+ -
True.
Tigertank 14th Mar 2011
@Monkeypox
I actually do not use my iPhone for music at all.
My full sized iPod I use on long road trips and when it is plugged in to it's speaker dock. Otherwise, I mostly use my shuffle for everything else.

Join the conversation!

Formatting +
BB Codes - Note: HTML is not supported in forums
  • [b] Bold [/b]
  • [i] Italic [/i]
  • [u] Underline [/u]
  • [s] Strikethrough [/s]
  • [q] "Quote" [/q]
  • [ol][*] 1. Ordered List [/ol]
  • [ul][*] · Unordered List [/ul]
  • [pre] Preformat [/pre]
  • [quote] "Blockquote" [/quote]
ie8 fix
Click Here
ie8 fix

The best of ZDNet, delivered

ZDNet Newsletters

Get the best of ZDNet delivered straight to your inbox

Facebook Activity

White Papers, Webcasts, & Resources
ie8 fix
ie8 fix