HeraldNet: Is the Zune headed for oblivion?




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Technology Blog

May 23, 2008

Associated Press (click to enlarge)

The Zune's sales apparently aren't worrying Apple executives much. Microsoft's media player hasn't proven to be a serious rival to the iPod.

Is the Zune headed for oblivion?

(Or, can ANYTHING beat the iPod?)

Posted at 5:07 pm by Eric Fetters

I love my iPod nano (I've got a second-generation one from a couple of years ago that is crammed with a lot of songs from this band, among others), but even I think the iPod sometimes gets too much fawning press.

On the other hand, millions and millions of consumers can't be wrong. And it seems like nothing yet is poised to beat the iPod. Ask Microsoft. It's tried.

And, according to the headlines today, Microsoft's answer to the iPod has been much less than a rousing success.

GameStop's decided to stop selling the Zune because it "didn't have the appeal" to consumers that the mall-based seller of video games and other electronic media expected. Since the Zune was released in 2006, it has sold 2 million units.

Since then, about 80 million iPods have been sold. So you see the problem.

The Zune, according to the most optimistic estimates, accounts for 4 percent of sales within the MP3 and media player market. The iPod owns more than 70 percent of the market. Ouch.

Should Microsoft throw in the towel on the Zune? At least a few analysts seem to think that's a good idea. This guy even suggests Microsoft could bury the unsold Zunes, kind of like Atari did with unsold video games once upon a time in the 1980s.

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