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J. Allard gives us some insight on the concept behind Zune

With all the news swirling around the official announcement of Microsoft's answer to Apple's iPod, it's good to get some commentary straight from the source. The fellas over at Engadget had 20 minutes to sit down and chat with Microsoft Corporate VP J. Allard to discuss all things Zune.

Some of the matters discussed include what Microsoft envisions for the Zune platform and its place in Microsoft's digital media product strategy. They also discuss PlaysForSure and Zune compatibility with existing music services. Here's J. Allard on the Zune's wireless functionality:

That's the beauty of having 802.11 in every device: we can do that. We can do more device-to-device, or we can do more PC-to-PC, so the combination of the device, the PC software that we're doing, and the online service is going to allow us to really shape how the community and the social aspect of Zune marries with the music experience. It also helps in terms of moving the music industry's way of thinking about integrating social networking and peer to peer in a really healthy way that works for them.

It should be interesting to see how the Zune user experience grows over the life cycle of the product. The large, widescreen display, wireless connectivity and social networking aspects of the device are promising and should be enough to give Apple something to think about when it fully redesigns its flagship iPod models.



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RE: Arrrrgh matey!
By slashbinslashbash on 9/15/2006 6:46:54 AM , Rating: 2
Actually, yes. Think about Xbox vs PS2 and GameCube. It's well known that the Xbox lost money for several years (not just on hardware) in order to break into the videogame market versus these established players. MS recognized that they had to lose major bucks in order to establish Xbox as a viable competitor. MS was actually one of the few companies that could afford to do so, and it was their stated strategy at the outset ("We're going to lose money on Xbox, but it's crucial for long-term positioning"). I can easily see MS doing the same thing with Zune, if they've truly decided to dedicate the company to it. And I'm actually kind of getting that vibe from the rhetoric in the J Allard interview.


RE: Arrrrgh matey!
By slashbinslashbash on 9/15/2006 1:21:27 PM , Rating: 2
Just found an article about this....

http://www.gamespot.com/news/6154809.html

Summary: MS's gaming division lost $1.26 Billion in fiscal 2006 and has been hemmoraging hundreds of millions every year since the Xbox. It is only predicted to make a profit in 2008. The Zune is expected to be a loss-maker.


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