Friday, January 25, 2008

How Zune Is Now?

(This was originally written in December and intended to be posted last month so bear with any outdated details.)

When Microsoft first introduced the Zune into an extremely competitive market for portable digital music/video players, it seemed like the device was destined for extinction as soon as it hit the store shelves.

First off, more than 90% of the market at the time was comfortably dominated by loyal users of Apple’s iPod. I myself have never owned an iPod but have had the opportunity to toy with one several times.

When the Zune first came out, it did not stand a chance against the iPod. Compared to the sleek looking iPod, the Zune literally looked like a piece of outdated crap. I have no idea who came out with the concept of a brown colored portable media player. Not enticing at all.

And so, roughly a year from the release date of the first generation Zune, here I am sitting in my office with…

A First Generation 30GB Brown Zune

Before you mock me and my poop-colored device, let me explain:

Why?

Roughly 2 weeks ago today, Microsoft introduced the new, updated Zune Second Generation 80GB. Timed with the launch of the new Zune player was the new firmware update that would also work for the old version of the Zune. Hence, the old and new Zune are essentially the same device except for the different look and capacity. Along with the new firmware update came new features such as support for podcasting, a better interface, ability to sync dvr-ms recorded media, mp4 and H.264, wi-fi synching, and, most importantly, the 2 features that Apple’s iPod does not have (Zune also supports streaming music w/ Xbox via wireless connection):

1. The Zune Marketplace – where you can purchase non-DRM protected music (Eat that iTunes!)

What does this mean?

It means that you have the ability to play, burn and share your purchased music with unlimited capacity on ANY device that supports the media format you downloaded.

2. The Zune Social – where you can set-up your profile that others can view and share different music, send messages and participate in the forum. It’s much like a MySpace or Friendster page. At this time, it is quite limited since the site is in its beta phase but things should improve once the developers start getting more feedback.

The Real Why?

Sometime last month, the first generation brown 30GB Zune players were put on sale to make way for the new Zune and to gain more consumer support for the device. When I saw the Zune 30GB on Amazon (I ended-up purchasing from Buy.com for the same price to avoid a back-order waiting period) for $89, I didn’t think twice. Screw the color!

Needless to say, Microsoft’s marketing strategy worked. With disdain for the iPod’s limited capability already a problem, the Zunes (both old and new) sold like hotcakes. In fact, the new Zune has become so popular that it is sold out at every major electronics store in the US.

Should Apple Be Worried?

The Zune is no longer the piece of crap that it was a year ago. Although the new Zune will never look as good as an iPod and the old Zune will always look like an oversized unappetizing chocolate bar, the new features that come with the new firmware and software updates more than make up for looks. When the Zune was initially launched into the market, Microsoft committed the same mistakes that Apple did with the iPod. But that has all changed. Microsoft’s new strategy could provide some unwanted competition for Apple. I am not saying that the iPod will not remain the dominant portable media player of choice for many users. There is a certain loyalty (and hatred) that will keep iPod (and Apple) users away from purchasing anything from Microsoft. However, Microsoft has opened the door to what may be the first successful player to stand toe-to-toe with the iPod.

Microsoft played it smart this time. Free firmware and software updates are compatible with old and new Zunes. Apple firmware updates are dependent on the version of iPod that you have (old does not support new). And did I mention DRM-free music?

With future software and firmware updates for the Zune in the works, the popularity of the Zune could surprise Apple. The demand is already there. We’ll see what happens.

Cons So Far?

The software was a b**** to install and update. Think Windows Me. Once I got it up-and-running though, problems have been minor. This should be fixed in the future with more stable releases of the new software.

For more information on the Zune:

http://www.zune.net/en-US/default.htm

http://reviews.cnet.com/mp3-players/zune-second-generation-80gb/4505-6490_7-32638989.html?tag=prod.txt.3

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