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Microsoft ships its one millionth Zune ahead of schedule

Microsoft shipped its one millionth Zune MP3 player after nine months on the market according to Robbie Bach, president of Microsoft's Entertainment and Devices Division. The company had originally expected to top the one million mark in June, but the company achieved the feat a month early.

"We're very pleased with the progress. We've sold a little over a million Zunes. In the category we're in, the hard-disk-based category, we've got about 10 percent market share," said Bach. "It's a good start. It's not an overwhelming start. I'm not going to pretend it's some gigantic move."

Even though Microsoft shipped over a million Zunes, it's still well behind segment leader Apple which recently celebrated its 100 millionth iPod sold after nearly six years on the market. As of February 2007, the iPod commanded 73.7 percent of the MP3 player market. Microsoft's 2.4 percent share was good enough for fourth place behind SanDisk and Creative Labs.

Microsoft is expecting a rather large uptick in sales leading up to the 2007 holiday season. The company is building a new manufacturing plant in China which will produce a second-generation HDD-based Zune along with a flash-based Zune.

In the mean time, Microsoft is likely to add firmware updates to existing Zunes to further enhance their capabilities. New MP3 player entries on the market such as SanDisk's Sansa Connect offer wireless downloading functionality that many assumed the Zune would feature from the start.

"As to the Wi-Fi, we think the idea of these devices being connected where you want them connected is very important. That's why we shipped the original Zune with Wi-Fi built in, remarked Bach. "The cool thing about that is, the innovation can all be in software. Wi-Fi is an important area. We'll see how that SanDisk project does."



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RE: Microsoft is doing the smart thing here
By Pirks on 5/28/2007 6:23:20 PM , Rating: -1
X-Box was not the underdog compared to PS2? In what terms? Spec wise - yeah, Xbox was a bit better, promotion wise - ok, Xbox got decent promotion. But sales wise it was still a dud compared with massive amount of PS2's sold. Check this out: http://en.wikipedia.org/wiki/Comparison_of_sixth-g... - the table "Worldwide sales standings" - see the numbers there? PS2 - about 118 millions sold. Xbox - 24 millions sold. Now you're telling me 24 millions vs 118 millions is not a dud? When there is FIVE sold PS2's for every ONE sold Xbox??! C'mon man, be more realistic. Labeling me a moron will only expose your lies even more, with more hard facts from Wikipedia, so be careful ;-)

Now it should be obvious why situation with Zune so far was a close replica of a situation with original Xbox. Zune is also seeing weak sales, just like Xbox, also it is arguably somewhat ahead of iPod spec-wise, at least concerning wi-fi and squirting, and it's definitely getting enough ads and promotion, just like Xbox was.

I can't understand why you so stubbornly refuse to see straight and obvious parallels with the original Xbox situation... you can't read wikipedia and numbers there or what?


RE: Microsoft is doing the smart thing here
By Treckin on 5/28/07, Rating: 0
RE: Microsoft is doing the smart thing here
By SigmaHyperion on 5/28/2007 10:00:17 PM , Rating: 2
That "initial" marketshare that peaked at about 19% took MS FIVE YEARS to earn.

Zune adoption is really not [i]that[/i] much different than Xbox adoption. It's just that the Zune has started so far behind the curve. When the competition had probably more than 100 million units already on the market before you got there, penetration takes a while on a percentage basis. Sony had a headstart with the PS2 too, but not NEARLY to the extent that Apple had with the iPod.


"If they're going to pirate somebody, we want it to be us rather than somebody else." -- Microsoft Business Group President Jeff Raikes














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