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Study: Zune Sales Slow But Steady

By BetaNews Staff, BetaNews

January 5, 2007, 11:10 AM

While Microsoft is adamant that sales of its Zune player are 'meeting expectations,' data from market research firm Current Analysis indicates that the device failed to break into the top 10 in sales, and is competing in the wrong market segment. As a hard drive based player, Microsoft has already limited itself to 20 percent of the overall digital music player market. Eight of the top ten players were Apple models, with the remaining two belonging to SanDisk.

However, within the HDD player segment, Redmond is actually performing quite well, with about one out of every eight players being a Zune, or 12 percent. Current's sales data only includes sales from five retailers: Best Buy, Circuit City, CompUSA, Staples and RadioShack. The player is found in most of their stores. Publicly, Microsoft has said it expects to sell 1 million players by June.

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By deminicus

posted Jan 7, 2007 - 5:17 PM

all I have to say is ms has staying power. their strategy is long term. it payed off for them over the years. they can come into the game late/half-assed, and in time become prominent.

Score: 0

By ladylust

posted Jan 6, 2007 - 7:13 PM

Its Microsoft's 1st attempt and breaking into the market and everyone wants to see AMAZING results. Do you know how many MP3 players there are out there? I think MS is doing a great job... it always takes a company a few tries to really break into anything.

Score: 0

By Neoprimal

posted Jan 9, 2007 - 12:16 AM

Agreed ladylust. And I don't think they're doing badly either. For their first player out, it's pretty good. Despite what people say, the Ipod didn't do well on it's first release, it actually was pretty bad - lots of problems with the players and many, many returns. Further down, the generations got better and better and the player bloomed because of the ease of use of the itunes store and because of 'creative' marketing that appealed to people who wanted to be cool/trendy. I think MS is on the right track and only hope they indeed shock people with the second generation of zune - the zune is a first try, reference system. I have heard about the skipping issue, but have never experienced it first hand, and I have quite a few friends who've gotten themselves the zune - brown for some reason, is SO popular, yuck! LOL.
I will be getting a zune for sure, but not the first generation - I have a zen vision, so I can wait a bit. I like the features, and the screen doesnt get icky with fingerprints. I'm just waiting for it to slim down a tad, lose some weight.

Score: 0

By Hollywood__

posted Jan 6, 2007 - 11:43 PM

ladylust,

It's a re-badged Toshiba, and their (Zune store) songs skip, that would qualify as half assed.

I would expect amazing results from the richest man on the planet.

Apple and Sansa got it right, the first time.

Score: 0

By Niro

posted Jan 7, 2007 - 11:46 PM

Uhh...My zune store songs don't skip...I know 4 other people with a zune, their zune stores songs don't skip....maybe not slamming the zune on the ground while playing a song is not a good idea eh?

Score: 0

By wincement

posted Jan 7, 2007 - 3:01 PM

I would expect amazing results from the richest man on the planet.

I didn't realize Bill Gates designed it himself. Interesting...

Score: 0

By Hollywood__

posted Jan 8, 2007 - 12:17 AM

Yeah, I'm sure he knew nothing about it.

Zune is to iPod like Mac is to Windows. There is a tiny fraction of Mac users who say it's the best but it doesn't run 95% of all the software on the planet.

Zune is a tiny market share in the iPod dominated universe, I wonder how that feels for Microsoft?

The Zune has gotten lukewarm reviews from day one, the people at the tech websites were slamming it the day it was released. It's a music player, just like any of the other 5000 out there.

Dont get pissed because people are bashing your Zune, if it's working fine and you like it, screw everyone else. I end up buying everything sooner or later, PS3(Blu-Ray)/Xbox(HD-DVD), Siruis/XM, iPod/Sansa and I'll probably get a Zune too. I don't own a Mac however, I know that's one purchase I will never make.

Score: 0

By eldernorm

edited Jan 29, 2007 - 5:10 PM

Hmmm, Hollywood.

FUD alert. "There is a tiny fraction of Mac users who say it's the best but it doesn't run 95% of all the software on the planet." Apple with Boot Camp runs all windows and apple software. Just noting it. :-)

I do agree, buy what you like and like what you buy. Zunes work. Great. I have heard of problems with the Microsoft store thought.

Elder Norm

Score: 0

By Niro

posted Jan 8, 2007 - 9:18 PM

People were saying the xbox was a disaster for MS the day it was released...look at them now, popular, profitable, and will probably stay ahead of sony (the ex-ipod mp3 player of the consoles)...

Score: 0

By direstraits

edited Jan 18, 2007 - 11:34 PM

Uh, hate to burst your bubble but MS has lost over $4 BILLION on the Xbox. Here's their last quarter's results:

"the cost of meeting demand for the Xbox 360 console has left the Microsoft Home and Entertainment division with a posted operating loss of $414 million for Quarter 4, 2006"

The news that no one wants to report is that the PS2 outsold all the newer consoles during the Christmas season:

"it's also worth adding that the PlayStation 2 outsold the next-generation consoles, its lower price and broad software catalogue driving 1.4 million sales. PSP did 953,200"

Score: 0

By IceyKola

posted Jan 7, 2007 - 2:42 AM

The "re-badged toshiba" argument is also over used and weak... yes MSFT contracted the zune out to toshiba to manufacture it, but it's not a toshiba designed player. MSFT designed it and wrote the software. It's not like MSFT took a toshiba player that was already in existance and just slapped their name on it.

Did the 1.2 update fix the skipping? I haven't experienced it since I haven't downloaded anything from the store.

Score: 0

By Hollywood__

posted Jan 8, 2007 - 12:22 AM

If Toshiba wrote the software it would probably work. Microshaft truly half asses everything they've ever produced.

Buggy, crappy O/S's, overheating game consoles (mine's like a space heater), Media Center PC's that are supposed to control your automation systems that freeze and lock up constantly. Next they'll be making cell phones and Segway knock off's.

Even Gate's 100+ million dollar home has a bunch of technical problems, because it's all Microsoft software.

Score: 0

By IceyKola

posted Jan 8, 2007 - 3:12 PM

It does work, I have no issues with my zune. I got mine the day the 1.2 firmware was released (ordered before it was released though, just coincidentally it was delivered the day of the 1.2 update). Why don't you go use one and see what it's like? All of my friends that have gotten their hands on it, have really liked it. Even more than the iPod. I'm using it right now.

Score: 0

By Hollywood__

posted Jan 8, 2007 - 10:58 PM

I'll give it a whirl, I have an 80GB iPod and a Sansa. I'm only going to load it with my own music, I won't spend a dime at the Zune Store though.

Score: 0

By Crispy777

posted Jan 5, 2007 - 8:57 PM

It doesn't even have a camera, videocamera and a phone. It is so yesterday.

Score: 0

By Hollywood__

posted Jan 5, 2007 - 4:21 PM

Aside from the songs bought from the Zune store skipping, it's lack of scroll wheel, and a useless wireless feature, smaller hard drive than Apple, it's solid performer.

By the way, Sansa is kicking some a** in the MP3 player market. I bought my daughter the 4GB color model with a MicroSD expandability slot, I like it so much, I already went and got myself the 8GB version. I do own an 80GB iPod, it's a great player but a little to heavy and the crazy amount of storage is unnecessary, at least for me. I listen to music for about a month and then erase the player in favor of all new songs I've never heard before. Ahhh, newsgroups.

I gave the iPod to my wife, she loves that it can be controlled directly through the stereo and it charges as well. There are no plans for a Zune interface cable that I know of.

Microsoft doesn't realize the whole world revolves around the iPod, there are literally hundreds of dock type accessories available.

Zune will and should go away. Sansa got it right with flash based players, their sales went through the roof this Christmas.

Score: 0

By Niro

posted Jan 7, 2007 - 11:49 PM

"Microsoft doesn't realize the whole world revolves around the iPod, there are literally hundreds of dock type accessories available."

Yes...The entire MS team did not realize this...too bad you don't work for them, they would do so much better!

Score: 0

By IceyKola

posted Jan 6, 2007 - 12:52 AM

other than the "lack of a scroll wheel" and "smaller hard drive than Apple" reasons... u have a decent point..

however.. Zune should not go away, because then i wasted $250.. that's not cool..

no player other than the ipod has a scroll wheel.. which is probably patented anyway, so that argument is over used and invalid.. not to mention a scroll wheel wouldn't work well with the UI..

the 30 GB zune player is the same price as the 30 GB iPod vid.. so for the price, it does not have a smaller HD than Apple...

don't count the zune out yet.

Score: 0

By Backlash

edited Jan 6, 2007 - 9:11 PM

Admittedly i've have only had my Zune for a day, but i't hasn't skipped at all ....i haven't even read anywhere that it had a skipping problem.

The worst thing about my iPod that my sister bought me xmas05 was when it fell out of my bag and got all scratched up it looked like an elephant danced on it,
with the Zune it has a non-scratch surface

Score: 0

By Hollywood__

posted Jan 6, 2007 - 11:46 PM

It's not the Zune itself, the player I'm sure is solid. It's certain songs from the Zune store that skip so it's the music file, not the player.

And it's not all songs but a lot of them have problems.

Score: 0

By Niro

posted Jan 7, 2007 - 11:51 PM

I've downloaded no less then 20 cd's from the zune store...not a single song skipped on me...and like I said before, I don't know anybody that had a skipping problem. What happened, someone on the internet found a single song that skipped and you're on here blowing it up?

Score: 0

By Hollywood__

posted Jan 6, 2007 - 6:45 PM

I wasn't trying to insult Zune users, I like the screen better than iPod's. The song skipping is a huge problem though.

I'll take the Sansa any day, all I want to do is listen to music, not watch videos and look at pictures. Being the type of person I am, I will probably end up with a Zune sooner or later.

The same thing happened with the PS3 / 360, I had to have both. The Wii looks fun, but the graphics are so Sega 16bit, I don't like the Virtua Fighter style characters and bad textures.

Score: 0

By drumcat

posted Jan 5, 2007 - 2:38 PM

Selling more? They must've shown up in the company store...

Score: 0

By pickchevy

edited Jan 5, 2007 - 2:55 PM

...and now they owe their soul. (obscure old song reference).

Score: 0

By leojei

posted Jan 5, 2007 - 12:35 PM

yeah, I'm waiting for a Zune with larger HDD, then I'll buy it - since I dont have iPod.~

Score: 0

By Hollywood__

edited Jan 5, 2007 - 4:39 PM

Don't buy songs from the Zune store, they have skipping issues and customer support (in India) tells anybody who calls, "this is the first time we heard of this problem". In an Apu Hapassapemapetelon style accent.

Just Google "Zune songs skipping", you will see what I am talking about.

Score: 0

By Niro

posted Jan 7, 2007 - 11:56 PM

You and your overblown zune song skipping issue. It affects less then 1% of the first batch of zune players out there....get a new anti zune argument, it's old and completely innacurate.

Score: 0

By icw70

posted Jan 5, 2007 - 11:48 AM

I have an iPod Video 80 gb. If I didn't have all the ipod accessories I'd strongly consider getting a Zune. It's just that I've invested alot of money in docks, speakers, car adapters, etc. Also if Zune had a larger capacity HD that would help too.

Score: 0

By pickchevy

posted Jan 5, 2007 - 2:00 PM

The Zune's a brick. You wanna get rid of that iPod, let me know and we'll deal. I like mine so much, I'd be glad to have two.

Score: 0

By -Wanted-

posted Jan 5, 2007 - 2:13 PM

Brick city.

Score: 0

By Paradise-FH-

posted Jan 5, 2007 - 2:09 PM

yes if only everything looked either like an ipod or a razr.

quit trolling already. we got the point after the first post.

Score: 0

By Hollywood__

posted Jan 5, 2007 - 4:23 PM

I agree, both are sheep products.......but the RAZR was free and so was the iPod so I can't complain.

Score: 0

By pickchevy

posted Jan 5, 2007 - 2:52 PM

"yes if only everything looked either like an ipod or a razr."

No, just not like a brick...especially a sh!t brick!

Trolling? LOL! Everyone who doesn't agree with you is trolling...right? Good luck with that.

Score: 0

By Hollywood__

posted Jan 5, 2007 - 4:37 PM

I am the king of trolls, I know a troll when I see one. I'm here for one reason, and one reason only.......... to ruin it for everybody.

Score: 0

By Bogunch

posted Jan 5, 2007 - 1:46 PM

Baaaaa....

Score: 0

By pickchevy

posted Jan 5, 2007 - 2:01 PM

Baaaaa....d move, considering a Zune.

Finished that for ya!

Score: 0