
The Microsoft Zune sucks. While we don’t feel that way (see number 6 on our Top Ten Gifts 2006 list), apparently most consumers do. Despite a whole lot of hype (which we strongly contributed to), the Zune’s second week of release saw the device fall to just 2% of total digital music player sales. Although its first week on the market was considered a success – the Zune held second place in market share at 9% - it’s the next six to eight months that will determine the player's future. With the real Microsoft music fans out of the way, it’s up to the Redmond-based company to reel in the mainstream listener. Although it would be easy to rule the player a failure already, Microsoft forecasts that they can sell one million Zunes by June 2007.
The Microsoft Zune is about the same size as Apple’s original iPod. However, this new player features 30 GB of storage space (around 6,000 songs) and Wi-Fi abilities, which allow users to wirelessly transfer DRM-encoded music files back and forth with three day limits.
There could be a few reasons for the Zune’s miserable start. For one, it hasn’t been widely marketed (we’ve never once seen a television commercial), released (apparently “North America” ends in Buffalo), and some artists don’t fully support the player’s interesting take on DRM.
So, how can Microsoft’s device reach that one million sales plateau by next summer? Well, according to sources, it will involve a heavily financed marketing scheme (we’re talking hundreds of millions of dollars). Like the Xbox, Microsoft realizes it will take time for the Zune to overcome an already dug-in competition.
Maybe it’s just us, but perhaps Microsoft should have thrown a few million of those dollars at a Christmas ad campaign…but that’s just us.