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Zune Meets One Million Goal

By BetaNews Staff, BetaNews

July 23, 2007, 12:05 PM

Microsoft said last week that it had met its previously stated goal of selling one million Zunes by the end of the company's fiscal year, which occurred on June 30. "We actually went above and beyond our goal: we sold 1.2 million units," Microsoft's Cesar Menendez said in the Zune Insider web log. Other reports also indicate that the company has surpassed an 11 percent market share in hard-drive based players, although its overall share remains around 3 percent of the market.

Even as Microsoft celebrates its success with the Zune, the iPod still outsells it by a wide margin. During the same period, Apple has likely sold more than 20 million iPods according to estimates.

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By cranbers

edited Jul 25, 2007 - 1:18 AM

I love the Zune!
I love IE!
I love windows!
I love office!
I love live search!
I love xbox 360!
I love Windows Server!

Is that enough love for you guys who like to name trolls?

Actually I love the market leader or biggest competitor in every one of those categories, can you guess who that is? Microsoft quite literally fails (practically) in every one of those markets but 2 and has a bad reputation with every last one of them. And we all know what those are that make money and have bad reputations. The list is long and just one big embarrassment.

Everything was copycat/improved by seeing what the market leader was doing or created and making their version. Pretty sad if you ask me. Take away those two cash cows microsoft has and think they would be a profitable company? I think not, Microsoft for all intents and purposes is a complete failure if it wasn't for windows and office.

Score: 0

By siryak

posted Jul 24, 2007 - 10:27 PM

Hey Pitdingo. You better stop using your computer. You are supporting the big bad MS!

Score: 0

By Hollywood__

posted Jul 24, 2007 - 7:47 PM

Once again the people voicing hatred over a product they down own nor can they afford are here spouting bile.

Score: 0

By idondon

posted Jul 24, 2007 - 8:08 AM

1) THE LOSERS
Joe states in the article that the losers in these numbers are basically a little bit "Apple iPod" & a lot "Creative Zen & PlaysForSure". Not only is this right, it's an early demonstration that the old partnership model wasn't working. Creative couldn't market their way out of a paper bag. Joe recently has been criticizing Microsoft for not being enough of a partner, or at least that was a theme of his in his final blog entries with Jupiter. This is early confirmation that partnership is certain areas is a recipe for failure in certain areas where the "ecosystem" model has to be built top-down, not bottom-up.

2) I DON'T HEAR NO FAT LADY
I've heard more than my share of comments that the Zune is dead. I also recall people saying that early on about AOL vs MSN, IE 1.0 vs Netscape, Xbox 360 in Japan, and RISC vs CISC. Has anyone forgotten that the Zune is basically just a hard drive with a 400mhz CPU, & an easy-to-use WiFi Adapter connected to it? Think of the possibilities! With that in mind, Zune has probably a dozen or so gears left to go before it's hit full stride in this market. What gears, pray tell? Well here's a few things to chew on:

- OPEN NETWORKING: It should be obvious that exchanging ANY FILE between Zunes is possible; it's just intentionally crippled right now so that Microsoft could get the music industry to ride along. If I told you that my $225 Zune could copy any file I have to any other Zune in the perimeter without restriction, you'd probably involuntarily say, "Whoa... Cool." And I'm not even saying Microsoft would be the ones to do this: Zune uses a derivative of Windows CE, making it very configurable by external forces.

- DJ MODE: Zune was originally billed has potentially having a DJ mode, which allowed you to broadcast over a multicast subnet, sharing the music you're currently playing with anyone in the vicinity like an independent radio station. This was reportedly cut for the initial release but is just a firmware update away.

- WIFI PC INTEGRATION: Anyone noticed that the Zune doesn't wirelessly sync with Windows, or transmit files to the Windows PC hard drive, or wirelessly broadcast music to the PC's speakers? This is for all intents and purposes, just a firmware upgrade away.

- ONLINE MUSIC PURCHASES: How about buying music directly from the device? Completely possible but not emphasized for this release. Keep in mind that this is all just software and requires no hardware changes to the device.

- DIRECT-TO-XBOX360: Zune was also billed as having network sharing with Xbox 360 consoles, effectively serving music & video directly over WiFi to a home entertainment system just by entering the room. This was later downplayed to "delivering content through the Zune Desktop software" through a Windows Media Connect like interface, but frankly, WM Connect is so lightweight that the original functionality planned (direct-from-Zune playback on XBox 360) is effectively just a firmware upgrade away for the Zune player itself.

- NETWORKED GAMES: It's already known that several games are created & ready for the Zune. Think about the Zune's big screen and multidirectional controller. Now think about the WiFi adapter & multiplayer - even MMO game play.

- BLUETOOTH: The rumored stereo profile Bluetooth never materialized in the first shipping device - likely because of the need to retrofit the Gigabeat hardware. Don't think that it won't make the next version though.

- BETTER FORM FACTORS, SAME NETWORKING: The current Zune is essentially a Toshiba Gigabeat to get the device out the door, with other designs being independently created in parallel. With Microsoft hiring design firms like those that designed the Xbox 360's shape, imagine an entire family of devices appealing to different ages and needs... all using the same Zune WiFi interfaces & communications protocols.

- PHONE: Now imagine having a device that leverages the experience & relationships that Microsoft's mobility group has with the Zune team.

- VERSION 2.0 & 3.0: Who in their right mind believes Microsoft has ever gotten things perfect in v1.0? Did anyone forget that we're talking about Microsoft: A company with pockets so deep that they appear to have outlasted Sony in the investment & diligence departments with regard to the console war? A company with such a large war chest that they can keep competing & innovating until they gain a strategic advantage through one or more of their hallmarks: Integration, volume pricing, or their competitor's propensity to screw up big time just once, giving them enough room to pass them in the market. (See Netscape, WordPerfect, Lotus 123, Novell, Real Networks, Java, Macintosh, and any of the other companies that have been outgunned by Microsoft's business acumen.)

3) IT'S A BIG MARKET: People in NY & CA have the idea that Apple's iPod is everywhere and I disagree. This is a growing industry & most people don't yet own media players in the same way that they did Walkmen in the 80's. The game's still very wide open and I think that this race is a marathon, not a sprint.

Philosopher William James said that the art of being wise is the art of knowing what to overlook. I think the bumps in the road for Zune in its first release is something to carefully consider overlooking because I believe the network adapter that Zune has (and the patent for said configuration) is a technology marriage on the level of the Nintendo Wii's Wiimote Gyroscopic Controller. It's that revolutionary an idea.

It just needs some version 3.0 work on it.

Score: 0

By Scotch Moose

posted Jul 24, 2007 - 3:53 PM

That is what I've been thinking, real nice hardware package, with software that stops you from doing all the cool things that would have been possible. I wish they spent as much time writing software to make Zune do things as they have writing software to stop Zune from doing things.

Score: 0

By terminalx

posted Jul 24, 2007 - 10:18 AM

That was truly the best post I have read on here with some great ideas.

Score: 0

By pitdingo

posted Jul 24, 2007 - 9:52 AM

would have, could have, should have.... The thing is they did not. They FAILED.

When the Zune 360 comes out, we will see how they do...my prediction is they will FAIL again and say they met their goal of selling 1000 units.

Score: 0

By Alex Stevens

edited Jul 24, 2007 - 12:19 PM

Why do you even care so much, enough to get worked up emotionally about it. Find something productive to do with your life. Spreading venom and hatred about what is basically nothing more than a handheld appliance on web forums isn't helping anyone, and probably isn't healthy. Do you go into a rage over who makes the best toaster ovens also?

Score: 0

By terminalx

posted Jul 24, 2007 - 10:19 AM

Trolling along as usual so long as it has MS attached to it you will say it has failed.

/You really need a new hobby.

Score: 0

By mjm01010101

posted Jul 24, 2007 - 8:02 AM

MS makes great Mice. We just got a batch of the Presenter 8000 series (laser pointer, powerpoint slides, wireless, small/mobile) for laptops. What a brilliant concept. They work fantastically.

Otherwise, I'm tepid on most MS software/hardware.

Score: 0

By dikbozo

posted Jul 24, 2007 - 3:18 AM

I still haven't even seen one. My local retailers, Best Buy et al, have no idea what I'm asking for.
I would seriously doubt those numbers.

Score: 0

By terminalx

edited Jul 24, 2007 - 10:21 AM

So because 10 people on a msg board have never seen one they don't exist and the numbers are made up?

I've seen 1 Iphone and I work at a company with 10,000 people. According to your logic it must mean its failed too?

Score: 0

By Alex Stevens

edited Jul 24, 2007 - 1:28 PM

I have never seen anyone using a ____. Therefore they do not exist.

Score: 0

By phenomnaruto

posted Jul 24, 2007 - 3:03 AM

Zune 360 ftw

Score: 0

By cranbers

edited Jul 23, 2007 - 8:47 PM

There is nothing "successful" about a 3 percent market share, in anything. That is Apple's market share on the desktop for retail computers, that is the lnux user base for the pc os. All which would be deemed pretty lousey. I also think that is the the percentage of users still using opera or safari web browser, combined.

For every 100 mp3 players sold 3 zunes went now that is just sad.

Score: 0

By terminalx

posted Jul 23, 2007 - 10:22 PM

That was the goal MS had set for itself, no device is going to dethrone apple right away.

Score: 0

By dougau

edited Jul 23, 2007 - 7:21 PM

Come to think of it, I've never actually ever seen anyone with a Zune either. Just a display case full of them next to the mostly sold out iPod display at Wal-Mart.
If it supported playforsure and did away with the stupid point system of buying music I might consider getting one some day.
The Zune Halo 3 Edition looks pretty cool but at $249.00 (same is the 30Gig iPod) its just not enough to get people to switch.

Hopefully Zune 2.0 will be better!!

Score: 0

By pitdingo

posted Jul 23, 2007 - 9:21 PM

yeah, hopefully the Zune 360 is better.

Score: 0

By frankwick

posted Jul 23, 2007 - 4:52 PM

I would like to buy a Zune but I don't want a Gen-1 product. If MS was to offer an upgrade trade-in program so that Zune owners could get a discount certificate good towards a new Zune, then I may consider it. Until then, I'll suffer with my G3 ipod.

Score: 0

By terminalx

posted Jul 23, 2007 - 4:00 PM

The Zune itself it is a great device, version 2 or 3 should show whether if it can make a difference.
-to be successful they need to allow playsforsure (this was just stupid on their part)
-the wireless needs to be better implemented and made possible to download songs on the go
-advertising
-the share idea is interesting if they can get it better implemented, kind of like a rental but free that you share with your friends.

Currently I am using a Nano because manufacturers dont make an easy way to control the zune using the radio so I am using an Ipod.

Honestly, if I hadnt gotten it for free I would have went with something else. I have a shuffle and a nano and they both have to be constantly reset to working and sometimes the only way to get it to work again is formatting it.

Score: 0

By Latz !

posted Jul 23, 2007 - 3:23 PM

People bash the Zune because it's a Microsoft product, not because of the product itself.

Score: 0

By Benjamin Linus

posted Jul 24, 2007 - 3:46 AM

You obviosly havn't used one. Like all Microsoft hardware, it's HORRIBLE

Score: 0

By darkzero63

posted Jul 24, 2007 - 10:36 AM

So says you.

Score: 0

By cranbers

posted Jul 23, 2007 - 8:21 PM

let's just say if the Zune wasn't a microsoft product you would not even know it existed. The fact that it is so bad, that would make it a bargain bin were out of business next month product.

Score: 0

By pitdingo

posted Jul 23, 2007 - 6:49 PM

I bash it for both reasons. But, the thing is horrible so it makes it easy to bash.

Wonder why M$ does not put their name on it?

Score: 0

By Alex Stevens

posted Jul 23, 2007 - 6:53 PM

People keep saying it's so horrible, but I've yet to hear them give any reasons why.

Score: 0

By os11

posted Jul 24, 2007 - 12:05 AM

the software that syncs to your PC is extremely bad, managing music on the zune is a nightmare, and worst of all MS is trying to use a "point system" when you buy music, so you never know what a song costs. expect the zune to be quietly discontinued within 18 months.

Score: 0

By pitdingo

posted Jul 23, 2007 - 9:17 PM

because M$ just does not get it. What does it do that other players don't? It offers nothing above what the other players do. It is the polar opposite of cool.

And most importantly, it tries so hard to be cool, that is comes across as a totally un-cool. M$ has no idea how to make and market a hip product.

Score: 0

By zridling

posted Jul 23, 2007 - 7:21 PM

1. Ugly and inelegant
2. Expensive
3. Plagued by DRM
4. Built by Microsoft, a deeply dishonest corp.

Want more?

Score: 0

By Alex Stevens

edited Jul 23, 2007 - 8:05 PM

1. Personal opinion
2. So are iPods
3. So are iPods
4. Personal grudge

Score: 0

By terminalx

posted Jul 23, 2007 - 7:49 PM

1. the interface is much nicer then ipod, is it bigger, yes but not so much bigger then the ipod video.
2. its in line with the rest of ipod's devices and plays video too.
3. hello itunes.
4. Apple, yes they are entirely honest, give me a break.

we have the issue with the color display

we have the issue where a virus got on to their ipods using a WINDOWS machine (talk about irony) and they blame MS.

they lock their devices so tight and make you pay extra for a freaking battery which you cannot install yourself.

They both have their faults. Its called business as usual.

Score: 0

By ogman

posted Jul 24, 2007 - 4:51 AM

"the interface is much nicer then ipod, is it bigger, yes but not so much bigger then the ipod video."

Most of your argument holds up well, but the Zune is a brick. They even show the thing in a special display that attempts to hide how much of brick it is. I held a Zune in one hand and an iPod in another and the difference is dramatic. The Hasbro plastic feel doesn't help either.

Score: 0

By os11

posted Jul 24, 2007 - 12:09 AM

please don't lie:

you can install an iPod battery yourself, people do it all the time and it costs about $20.

do a google search for - ipod, battery - and you'll find all kinds of them. $20-$29 depending on how much power you want.

Score: 0

By idondon

posted Jul 24, 2007 - 8:09 AM

while you at it, why don't you do a search for your warranty

Score: 0

By terminalx

posted Jul 24, 2007 - 12:21 AM

Actually I am not lying, probably should have been more clear, the Iphone is a $79 charge for a new battery.

How many non-techie people actually go looking for a second-rate ipod battery, you or I would go for that but the average ipod person? Don't think so and Apple doesn't make it known either.

Its the same with most of Apple's products can you get around what they have tried to block you out of, sure. Will the average consumer try? Probably not

Look at OSX its not supposed to be able to run on a pc but it can be done. (truly the only difference is efi which will be interesting because I believe I read somewhere that pc manufacturers are moving towards efi.)

Score: 0

By ogman

posted Jul 24, 2007 - 4:59 AM

You're bias is showing a little too much. Switching from iPod to iPhone in the middle of the discussion just doesn't work, unless somebody slipped a phone in a Zune overnight.

Of course, the Zune battery replacement is no piece of cake either, as these instructions clearly show: http://www.batteryship.c...y_instructions/ZUNE.pdf

Score: 0

By terminalx

posted Jul 24, 2007 - 10:33 AM

Sorry, it was more of a generalization as the rebuttal was to the comment that MS is a dishonest corp.

Score: 0

By pitdingo

posted Jul 23, 2007 - 9:18 PM

the interface is horrible. M$ has no clue how to make an interface.

Score: 0

By terminalx

posted Jul 23, 2007 - 10:25 PM

Explain how the interface is terrible? Since we know you hate MS to a $ so I AM SURE you will not be biased at all.

Score: 0

By SGD

posted Jul 24, 2007 - 8:40 AM

He can't he just hates MS so he'll look for reasons to bash anything that is made by them. This guy and the other usuall suspects troll for MS articles so they can promote their hate agenda.

Score: 0

By cranbers

posted Jul 23, 2007 - 8:25 PM

Ok now lets bring sandisk and creative in on the subject. It's sad its Zune VS ipod. I haven't seen numbers but I bet the zune is the worst player on the market. The ipod, because if its fun stylish interface and quality is the best. it's fashionable.

Creative zen is probably 100 times better in every which way than the zune, creative is losing everything trying to keep it around, that is how good the ipod is, the zune is bad.

If it was not a microsoft product the zune would be completely unremarkable. The simple fact is, microsoft wanted a piece of the pie, no matter how small of a piece it might be.

Score: 0

By zridling

posted Jul 23, 2007 - 2:08 PM

Does anyone here know of anyone who's ever bought a zunie?

Seriously.

I've never seen one in Chicago to this day except in Wal-Mart stores.

Score: 0

By idondon

edited Jul 24, 2007 - 8:24 AM

I'm one of the so called suckers that own one, I don't see how people can complain about it but never used one.

The interface is flawless, the software works.

Personally, I think the iPod better(I own both), but I dont think the reason people are giving for not liking it are legitmate.

I have not seen anyone with and Zune(don't ride public transportation), but they are only reporting 1 million sold, which btw exceeded their expectations. Doesn't matter if its only 3%. They are not even selling the device worldwide

Score: 0

By pitdingo

posted Jul 23, 2007 - 2:46 PM

never seen one nor heard of anyone buying one. I ride the train to work everyday and work in a major city. hard to believe i have never seen someone with one.

Score: 0

By phenomnaruto

posted Jul 23, 2007 - 5:59 PM

well I live in big city and ride big train and i never see anyone with an iphone, what does that mean?

Score: 0

By pitdingo

edited Jul 23, 2007 - 6:53 PM

Funny you should bring up Apple...I have seen three iPhones so far. Still no Zune.

Apple almost sold more iPhones in a weekend than M$ Zunes sold in a year.

Score: 0

By cranbers

edited Jul 23, 2007 - 8:30 PM

yeah 500k IN ONE WEEK END for the iphone, at minimumm 500 dollars each! 1 million barely in what a year? in how long exactly? I see the zune display in every single retail store I visit, Target, walmart, best buy, circuit city so marketing hasn't helped. Combined retail stores that is a ridiculous number of locations, were talking what 50k stores? all with zunes in stock and a huge display no one touches?

Just to put that in perspective, each store would have to sell 20, thats right 20 zune's per store to get 1 million.

Score: 0

By terminalx

edited Jul 23, 2007 - 10:31 PM

Yeah, how many commercials, tv outlets covered the Zune?

You could make millions selling a rock (some guy did) if you promote it right. Zune had one day of promoting if even that, you can't walk anywhere without seeing the Ipod commercials. Hell, theres giant billboards in NY.

Everyone I know that has seen the Zune agrees it is a great device but its ideas were half-baked. Personally, I believe the second version will be better because they didn't spend a whole lot of time on the first Zune, it was more of an experiment to see if they could enter the market.

Even if MS came out with the greatest invention the same 5 people who come on every MS post to slag the company would still say the same thing because MS made it.

Score: 0

By pitdingo

posted Jul 24, 2007 - 8:05 AM

I am not sure what planet you live on, but the Zune is marketed everywhere. Welcome to the social...

The Zune sucks. Period. You can try to make excuses for it, but in the end...it sucks. That is why people don't buy it.

"Even if MS came out with the greatest invention the same 5 people who come on every MS post to slag the company would still say the same thing because MS made it."

M$ has no history of invention or innovation. They copy everything they see, come late to every party, and fail over and over again. Zune, Xbox, XBox 360, MSN TV, etc... All failures.

Score: 0

By SGD

edited Jul 24, 2007 - 8:42 AM

You are so right that is why they make billions in profits. Your blind hate is getting rather boring.

Hey how did the virtual boy do?

Score: 0

By pitdingo

posted Jul 24, 2007 - 9:51 AM

it is easy to make billions when you have an illegal monopoly. M$ has no clue how to compete based on a product. Cases in point...Zune, XBox, XBox 360, Internet Search, etc...

Name a single product that M$ has brought to the market which they have won the market legally. DOS..no Windows...no Office...no IE....no ????

Heck, look at what they are doing with their garbage OOXML crap. That is typical M$.

Virtual Boy was a failure. And your point is?

Score: 0

By SGD

posted Jul 25, 2007 - 8:53 AM

You make it sound like MS is the only company that fails. You need to really get a clue MS is no breaking the law. I know in your mind they are but reality is calling. Have you seen what MS is doing in the workplace lately. Most likely not.

Score: 0

By Alex Stevens

posted Jul 24, 2007 - 12:21 PM

Microsoft does not have a monopoly in handheld music players, you know better than to try that.

Score: 0

By terminalx

edited Jul 24, 2007 - 10:49 AM

Yeah, they havent been a monopoly for quite some time and the xbox360 is not dead, the xbox was to enter the market.

No device just takes over the market instantly.

Also the Zune is only available in the US.

It took Ipod several years to become the force it is.

The Iphone sold well initially but will it keep up or just the people who have to have the latest and greatest?

You can never be not biased toward anything MS, never have I heard such a one-sided argument.

actually here is a few ideas MS has.

http://www.betanews.com/...ynth_3D_Tool/1163112465

http://www.betanews.com/..._Silverlight/1179526052

Plus hate to break it to you if MS did not come up with the devices you claim as failed, other companies would not try as hard and you would get a half assed product.

Sony underestimated the xbox360 and assumed everyone would flock to the ps3 no matter what the cost, they are seeing they are wrong now, so obviously they aren't giving up and trying something different.

Competition is a good thing.

Score: 0

By Latz !

posted Jul 23, 2007 - 3:21 PM

Well that settles it then.

/sarcasm

Score: 0

By phenomnaruto

posted Jul 23, 2007 - 2:17 PM

you guys don't have circuit city or best buy in Chicago? Aww, thats a shame.

Score: 0

By Hollywood__

posted Jul 23, 2007 - 1:58 PM

I like the screen on the Zune much better than my iSheep. I may have to get one and check it out.

I still use my Sansa almost exclusively. It sounds better than the iPod as well.

Score: 0

By phenomnaruto

posted Jul 23, 2007 - 2:02 PM

I heard Sansa was doing big things, but i wasn't too keen on the flash-based sansa I got cuz it screen wouldn't show in broad daylight. But then again i got a really low end Sansa

Score: 0

By phenomnaruto

posted Jul 23, 2007 - 1:54 PM

in before mass flood of $$$Apple$$$ drones.

Score: 0

By MinuteMaid

posted Jul 23, 2007 - 1:33 PM

Sold them to landfill I think..

I don't know a single person that has a Zune, most people don't even know what a Zune is.

Score: 0

By Alex Stevens

posted Jul 23, 2007 - 1:15 PM

I predict trolls...oops too late.

Score: 0

By ogman

edited Jul 23, 2007 - 1:58 PM

There is a certain amount of truth to some of the "trolls." Specifically, I don't know of anyone who has a Zune either and I've actually looked of them at school, in malls, etc. Where are they?

Here's a marketing ploy for Microsoft: The Zune Safari. Have people hunt for Zunes in the wild and take pictures of them. Send them in for free music and other prizes. This could help counter the perception that there are few actual Zunes in the hands of users. The only way it's risky is if participation is dismally low or the Zunes are impossible to find; then it becomes another Microsoft PR joke.

Score: 0

By Jordanr05

posted Jul 23, 2007 - 5:19 PM

Pontiac actually did this with their "spot a G6" campaign. People would take pics with their cell phones of the car driving by, then send it in. I can't remember how many cars they gave away as prizes, but it seemed like a nifty idea.

Score: 0

By pitdingo

posted Jul 23, 2007 - 2:45 PM

"The Zune Safari"...thanks for making me spit water all over my keyboard.

Score: 0

By ogman

posted Jul 23, 2007 - 11:01 PM

Mission accomplished! ;o)

Score: 0

By Program86

posted Jul 23, 2007 - 1:10 PM

1 million SUCKERS and counting... BWAHAHAH

Score: 0

By wildwoody

posted Jul 23, 2007 - 1:01 PM

Coming soon....

zPhone

lol

Score: 0

By frankwick

posted Jul 23, 2007 - 4:52 PM

Dood... Have you not heard of Windows Mobile phones? The zPhone has been out for years.

Score: 0

By wildwoody

posted Jul 24, 2007 - 1:58 PM

Sure have and I sell them everyday. Any other stupid questions? Since it was a joke.

Score: 0

By Das mod

posted Jul 23, 2007 - 12:27 PM

is this time for reals :P
or is it an "overstatement" just
like last time ...

Score: 0

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