Featured Articles

IDC says PC market is rebounding

IDC says PC market is rebounding

Research firm IDC has published its latest report into the state of the PC market and while there are some signs…

More...
TSMC steps up development of 10nm process

TSMC steps up development of 10nm process

TSMC, the world’s biggest chip foundry for hire, has reportedly stepped up development of its 10nm manufacturing process.

More...
Broadwell 14nm desktop comes late in Q2 2015

Broadwell 14nm desktop comes late in Q2 2015

A while ago we mentioned that Broadwell won’t show up in the desktop space this year and we got it right.…

More...
AMD A8-7600 Kaveri APU reviewed

AMD A8-7600 Kaveri APU reviewed

Today we'll take a closer look at AMD's A8-7600 APU Kaveri APU, more specifically we'll examine the GPU performance you can…

More...
EVGA GTX 780 Classified reviewed

EVGA GTX 780 Classified reviewed

The EVGA GTX 780 Classified has been dethroned as the company’s fastest non-Titan card following the introduction of the GTX 780…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Wednesday, 28 May 2008 07:11

GameStop to bail on Zune

Written by David Stellmack

Image

Claims that customers are just not interested

Microsoft continues to push onward with its war against Apple in the MP3 player market space, but to be honest it has been a bit of an uphill battle. Things didn’t get any easier today when long-time retail partner, GameStop, announced that they are pulling the Zune from stores, citing a lack of interest from GameStop customers.

According to reports, GameStop will move to pull the Zune from retail stores and continue to offer the Zune via its online store until supplies are exhausted. GameStop suggested that the decision had more to do with the fact that the Zune didn’t fit with its strategy moving forward, and that it failed to spark the interest of GameStop shoppers.

Microsoft still has a number of retail locations that are continuing to sell the Zune, so current Zune owners should not panic yet; but even with all of the extensive work that Microsoft has done on the Zune, they have only been able to capture just a fraction of the MP3 player market space, which was estimated by some to be as little as 4% of the total market.

By way of comparison, it has been said that Microsoft has only been able to move a scant 2 million Zunes since it released the player in 2006, while in the same time frame Apple has sold over 10+ million iPods in the last quarter alone.

While there are some compelling areas where the Zune does have a bit of a lead over the iPod, it does seem that these features have not made a difference with consumers. Microsoft continues to spend a lot of time tweaking the software and features of the Zune, and the latest version 2.5 update added a variety new features, but it was largely ignored by consumers and the media.

Our take is that Microsoft really lost a golden opportunity to cross-pollinate Xbox 360 sales with the sale of Zune MP3 players. Still, Microsoft has to step up its game and give people a more compelling reason to buy a Zune over an iPod. The iPod continues to be the de facto standard for MP3 players, and in fact many owners are already on their second or third iPod.

Microsoft should seek tighter integration with the Xbox 360 to build a strategy that includes the Zune. Without really extending the abilities of the Zune beyond what the iPod can offer, we suggest that the Zune will just be another footnote in MP3 player history in a market space that is dominated by the iPod.

Last modified on Wednesday, 28 May 2008 07:34

David Stellmack

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments