Microsoft today confirmed the existence of a new portable music player and integrated service called Zune. Launch is scheduled for launch some time this year.
Zune is clearly aimed at Apple’s iTunes/iPod dominance. In an interview with Billboard, Chris Stephenson, Microsoft’s new GM of marketing for MSN Entertainment Business, said Zune will be an umbrella brand for what he says is “a family of hardware and software products” targeting various digital entertainment services.
It’s an ambitious project that some critics are already saying goes too far outside Microsoft’s core strengths and could end up joining other media projects on the junk heap of tech history. Perhaps after seeing how successful Robert Scoble was in making Microsoft lovable again, two company employees working on Zune are also blogging about the project. Cesar Menendez is writing ZuneInsider.com, just launched today, and Richard Winn is writing blog called Madison and Pine. The company has also set up a site to collect emails for further information at ComingZune.com.
It will be interesting to see if the company can take a position of real innovation or whether Zune will just be a case of playing catch up - at the risk of feature overload.
WHY ZUNE?
Why not.
Probably a play on the word “tune.” They are trying to compete with Apple’s iPod/iTunes package.
What an ugly logo.
i hadn’t thought about the zune/tune name play. that’s good.
logo? name “Zune” ? - If it is true then I guess that’s the difference between Microsoft & Apple!
Let’s see if UI looks like XP!
That name must have taken like 3 minutes to come up with.
Xbox + iTunes
X-tunes
Xunes
Xune
Zune
I have been trying to find out an “E” in the logo for a long while. I can see a skewed “e”
Z & U & n & N are there.
Most people that want an Mp3 player (iPod) already have one… That means they are familiar with the interface and usage, so why would they switch?
Looks like MS might have waited too long for this one.
Michael… You’re kidding right. You hadn’t thought about the Zune/Tune thing. c’mon. This name is so lame, and obvious, I find it hard to believe someone was paid to think it up. This has to be a secret code-word name.
Its really sad actually. A major player like Microsoft, totally going soft on quality media products. Just pay off digidesign, and call the thing an mBox. Tie into the xBox and make life easy. Call it a Box. Anything other than Zune. And save yourself the hassle of explaining why you buy videos from a place called iTunes (or Zune, that rhymes with Tune).
When will iZunes launch?
i wonder if it will have ogg support?
haha, just kidding. i crack myself up sometimes. but it’s sort of sad that microsoft cripples everything by not supporting open standards.
I wouldn’t hesitate switching to another product if the product fulfills my needs and more - starting with everything that iTunes and the iPod have.
I would love to see a more statistical interface implemented into the Zune project. I love music statistics - how many hours I have listened, my most popular artist this week, etc. Take inspiration from what last.fm have done. It would be an idea to have a community that operates based on your listening habits - again like last.fm - implemented into the project. This is something that iTunes and the iPod lacks, the ability to interact with its consumer. All you do is buy songs and load them onto the player (with the exception of sharing playlists).
As for the Zune/Tune thing - that came to my mind the first time I heard Zune and I can’t believe that you didn’t notice it Michael.
The name is certainly lame and I hope it is only a code name for the project until they launch a more fitting or creative name.
Zune to me sounds like a brand trying too hard.
Could this move be the one that pushes Apple into opening up their DRM? There are a lot of companies out there wanting to put a bit of DRM onto podcasts etc. to legally include published music. If you use Windows Media DRM today you won’t be getting onto the dominant device. So it’s iTunes or …
Microsoft will get all the music and podcasts that iTunes have, plus they’ll have a world of DRM’d, legal, big name podcasts on their site.
If they 1) Get this into more phones, and 2) have a decent UI, they’ll eventually beat Apple.
Zune must be a code name…
If Microsoft fails at this, its brand value will go further down the drain. Microsoft should treat this as it did XBox; don’t explicitly reveal the brand behind it. If it’s successful, it can go ahead and elluminate the Microsoft brand.
“What an ugly logo.” - That was completely my thought too.
Hey Mike,
Sad to see the wiki idea flopped. Could you please pass me 2 invitation
Vijay (wallstwag)
Makhan
Maybe it’s tune + zone = zune. The zone could refer to the features that supposedly allow users to share their music wirelessly.
Me likey Zune,
iPod is just such old news…
w00t w00t!
Did Marshall say that Scoble made Microsoft “lovable again” ? I can’t remember Redmond being lovable before, during, or after Robert Scoble picked up his keyboard and blogged from their payroll.
More on the topic — what can Microsoft (or anyone else) do to get the installed base of iPod users to walk away from their proprietary digital music collections and convert to a new platform? Winning the hearts and minds of consumers never comes down to the features the TechCrunch wonks like us extol — it always comes down to the brand and cool factor.
And the cool train left Microsoft a decade ago.
Game. Set. Match — Apple.
The logo is decent - somewhat meaningless, but looks ok. But the name is such a rip-off. I imagine MS could have afforded to hire someone to come up with something more original.
Then again, maybe they want attention with the poor naming so people can remember it easy. Regardless, I’d expect more originality.
Maybe they just want jump on the media bandwagon that is Zooomr?
“Could this move be the one that pushes Apple into opening up their DRM?”
Yes because Microsofts “Zune” product is going to rock the world and threaten Apples dominance. Come on. When was the last time Microsoft came into the market with a superior product compared to competitors.
Microsoft will be lucky if this doesn’t flop. Or maybe they’ll use the X-Box tactic and throw billions into it till it works halfway decent in its second generation release.
“The logo is decent ”
The logo sucks. Hard.
The color scheme (orange and purple gradient? WTF?), the meaningless design (is it supposed to be some kind of broken cube?) and then to top it off, a stupid name.
Did anyone check out the comingzune site? What’s with that guy stroking the rabbit in the intro film?
Let’s put the logo and brand naming in perspective. The other option is to call it “Microsoft Windows Live Digital Media Device Consumer Edition.” I applaud MSFT for following Xbox down the path of building distinct consumer brands outside the usual MSFT brand hierarchy.
Regardless of where you stand in the religious battle between MSFT and Apple, this move does benefit all end users, even those with an iPod.
the logo, sadly, like the name, blows in a 3-dimensional diagonal Z-formation…..
————-”is it supposed to be some kind of broken cube?”——————-
———————————————————————————————-
the logo, sadly, like the name, blows in a 3-dimensional diagonal Z-formation…..
This is a great move by Microsoft indeed. Those being sceptical about it are usually anti microsoft users in the first place. Myself? I see this as a step forward. Why? Well everyone thought that Microsoft would not be able to put a hole in the Sony Gaming Giant. But guess what! They did.
One thing is undenyably true about Microsoft. They have unlimited amount of resources at hand. And word is Zune will be advertised consistently. Theres one thing that Microsoft knows hwo to do, and thats be persistant when its sure on something. They saw sponsoring Creatives Zen wasnt working so they decided to take things into they’re own hands.
I commend Microsoft. Myself I saw what the product looked like from a friend who works with their company. Let me say this.
Microsoft is going to offer to buy all the songs you purchased with Itunes to move over to their new platform for free! What does this mean? Meaning Microsoft is willing to pay licensing fee’s just transfer a user to their product.
And the functionality of Zune? Well… You Guys will see soon ^_^. ITs extremely impressive.
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The name ” Zone ” is not official yet , this is from BetaNews :
Redmond’s moves to counter the success of the iPod have also resulted in several code-names, including Argo, Pyxis, Zune, and Alexandria. Although solid information as to the actual product details is scarce, various media sources have compiled some information from sources inside and outside Microsoft.
http://www.betanews.com/articl.....1153418667
Frank Cefalu, I think you are in la la land.
Microsoft has made an impact on the console market but one that has costed them billions of dollars.
The problem here isn’t its capability, but the fact that the company finds itself playing catch up all too often.
Microsoft can do this, I don’t doubt that. But if you are indeed saying that they will purchase all the songs that you currently own on iTunes then aren’t they just pouring billions and billions of more money into this to play catch up and it may be light years before they make a profit. Not to mention the thousands of people making false claims.
I don’t see Microsoft being a winner here, in fact I see Sony as maybe coming out on top.
the name ZUNE in hebrew means, well, F**K. or more precisely, the act of f***ing.
it should be a funny ad in hebrew - do you have a f***? the new f***! etc.
do us a favor and think of something more polite…:)
wonder what this means for microsoft’s partnership with MTV on URGE, the current default music store in WMP. strangely, URGE has never been mentioned on this site…
It is known Alex that Microsoft Spent Billions on Dollars with the Xbox on advertising ventures alone.
But they see future customer loyalty as a bigger gain.
Microsofts budget isn’t the same as Sony nor Apple. You cannot forget that Microsoft Windows compromises more then 80% of the worlds operating systems. This = alot of dough in the bank.
For a multi trillion dollar company, an gureilla advertising campaign for one product isnt difficult for them. Especially when they hardly do any advertising since they are a table top name just like coca cola.
And Alex what lala land do I live in? Itunes comprimises more then 70% of all mp3 music song purchases in the US.
THEY have a HUGE gap to jump. If I am not correct, any small ordinary form of advertising or pushing of their product will not work.
Also the fact that Allard Vice President of XBox is involved is a huge significant factor.
Alex,
Sony’s portable IPTV offering looks good but they have struggled:
http://www.sonymediasoftware.c.....sp?PID=995
http://news.com.com/How+Sony+f.....tag=st.num
The good news is that all of this effort will bring portable IPTV into the mainstream sooner than anyone had hoped. Consumers and independent content creators will benefit from these platforms as they will level the playing field of distribution which will enable much more choice in programming.
Eventually, however, folks will become too frustrated with the codec silos and proprietary formats … Apple and Sony will force Microsoft to adopt H264 AVC and standard AAC in MP4 in order to satisfy the “three screen” goals of consumers and content creators. Only content that flows easily across many vendor stacks will reach the distribution that advertisers will demand.
It is going to be one hell of a rivarly for sure.
Frank,
You make some great points:
1.) Meaning Microsoft is willing to pay licensing fee’s just transfer a user to their product.
This = alot of dough in the bank.
2.) And the functionality of Zune? Well… You Guys will see soon ^_^. ITs extremely impressive.
3.) Also the fact that Allard Vice President of XBox is involved is a huge significant factor.
However, you seem like a lone Redmond cheerleader in a sea of Apple fans.
It is an interesting move by Microsoft, after several years of saying Apple’s strategy had it all wrong, they are validating Apple while seriously undermining a great deal of the hardware (beyond mp3 players) and music vendors who rely on Microsoft technology.
How long was Microsoft publicly encouraging vendors to use their technology and working on Zune internally?
Maybe this is why Dell and HP got out of a lucrative hardware segment early? Both of those companies have a wide-variety of consumer-oriented systems.
Wall Street will absolutely crush Creative, Napster, iRiver and San Disk, (it seems they got steamrolled and worse yet, never saw Microsoft turning on them). Microsoft’s introduction and marketing of the new Zune technology implies that it will be superior to the existing Microsoft technology given to partners. If they succeed, they will almost immediately cannibalize the “not ipod” marketplace.
With Microsoft’s validation and competition against their partners, it seems any company that does not have the “integrated player/software” strategy is likely to become a commodity player at best and the market is likely to consolidate with Apple dominating and Sony, and Microsoft as large forces (%60, %10 ,%15). To a lesser degree Sandisk, Samsung and any other flash memory manufacteror because of their flash memory business, and all the smaller commodity players that can produce under $50 players that Walmart, Target, etc. can rebrand as their own technology brands.
I see problems with Microsoft’s strategy in the consumer hardware market alone, let alone the how the actual player will compete in the marketplace. So, let’s talk about microsoft’s xbox project and money…
I do not really see this as a great advantage, the xbox project is still plagued with difficulty (supply chain management etc..) and really is not yet a profitable franchise. In addition, xbox360 has yet to do well against Sony vaporware… not much to crow about.
Jumping into portable media players at this point is a desperate move, Microsoft should have charted out the “digital media” strategy and saw the importance of integrated hardware at least two years ago. Why? This was the same logic behind Microsoft producing the xbox. Even struggling Sony was able to begin work on Connect and their mp3 players and have a huge hit with the PSP.
Amazon is jumping in as well saying that they will have a monthly hardware lease program (i think under $20 price point), coupled with unlimited music subscription.
However, that is just it, they are all jumping into a proven market with less experience.
Let’s get on to the player and technology itself…
As a scientist myself, I find it really hard to make any assessments of the tech until I have the production system (off the assembly line) in my hands. There are so many constraints (battery life, screen size, durability, price etc.) on these players that it is hard to judge on the basis of leaks and promises (Sony Ps3 !).
All I do not see “unlimited” money as a significant advantage, I see the software / crushing their existing vendors as Microsoft’s largest short-term advantage. However, in the long term, I am very concerned about Microsoft’s focus as well as credibility with hardware producers.
does m$ think they’re onto somthing with the whole
“lets create a completely un-related flash and place an indie/folk song behind it…that’ll inform people of our new ideas”
they just keep getting dumber and dumber, i mean come on
A RABBIT?? WTF!?!?!?
“Style” is a key factor in all of this with regard to mainstream adoption of technology. The Sony Walkman was a mainstream “style accessory” not just a technology. They have been trying to come to market with another style accessory ever since: http://www.sonystyle.com … Arguably the iPod has been the only technology-based mainstream style accessory since the walkman (not the startac, blackberry, or treo … these were not mainstream) … also “style” explains the bizarre popularity of the sidekick … these guys might have a play in the portable video space if they decided to get into it: http://sidekick.com/ … they certainly understand style marketing.
To date, Microsoft has not understood how to sell products to the mainstream market … this video pretty much sums up the problem in a very funny way: http://youtube.com/watch?v=iJD.....oft%20ipod
I gotta say, when I saw that rabbit flash thing I thought - wow, that is classic Pacific Northwest hipster stuff - Microsoft style. I just moved to Portland and that flash thing has a very familiar feel.
Who cares? If Microsoft makes it, won’t buy it. They’ve failed too often.
I think this is going to be an interesting product. Im sick of my iPod and the battery life is terrible. If microsoft can improve on a few functionalities and features, theyve definitely converted me as one of their customners.
“This is a great move by Microsoft indeed. Those being sceptical about it are usually anti microsoft users in the first place.”
Yes, anyone who criticizes Microsofts stupid products must be completely anti-Microsoft. It has to be one end of the scale or the other right? And that makes you a butt-kissing fanboy?
I had an IPOD until the battery just died out. And what about the new Mac Laptops whose Batterys expand and actually break the casing due to over heating.
Whether or not your a “Scientist” does not make you any smarter on marketing a product. Nor am I saying I am myself. But the fact that you say
“All I do not see “unlimited” money as a significant advantage, I see the software / crushing their existing vendors as Microsoft’s largest short-term advantage. However, in the long term, I am very concerned about Microsoft’s focus as well as credibility with hardware producers. ”
I do not see this. What I do see is Apples unbalanced track its going. So far they seemed to tottaly shift their gears to the ipod. After a while the Ipod fad will die and then what? Currently when someone thinks of Apple they think IPod.
Why would Microsoft would do this is easy. If you fill the market with a competitive product such as Zune than Apple will become flustered feeling their product “Ipod” is losing marketshare and will keep their minds on their digital music product more then their software development.
How would Wall Street kill this product? As an Investor this is a Huge deal in whether one should sell their apple stock or not. Because I dont think alot of investors will be happy if Apple stocks drop because Zune is a successful product.
My personal opinon is Microsoft is here to prove Apple wrong just as you said. But they are doing it by cornering Apple into a music fad war. What long-term objective would there be for this for Microsoft? How long will the Ipod remain a hot item? Until another item replaces it. And its kinda akward and disturbing Microsoft is just annoucncing this right on the heels of releasing vista. It seems like Microsoft is going for a 1-2 knockout punch here, and the momenteum behind it is disturbing in the fact that is superbly well cordinated. Very unilike Microsoft.
“And Alex what lala land do I live in? Itunes comprimises more then 70% of all mp3 music song purchases in the US.
THEY have a HUGE gap to jump. If I am not correct, any small ordinary form of advertising or pushing of their product will not work.”
You are in la la land to think that by purchasing the library of individuals to intice them to switch is going to pay off.
Lets see. Over 1 billion songs sold. Do the math and you will see why they have already failed in that category if that is one of their strike weapons.
Microsoft have ALMOST failed before they have launched. I wouldn’t count them out - stranger things have happened.
But has Microsoft turned a profit over the whole XBox / 360 project? Their strategy there was amusing to say the least. Basically pour a whole lot of money into a project and MAYBE we will make some dough - it will at least get our name out there. Wrong.
Microsoft need to take a different strategy on this one.
And lastly you are in la la land to be so confident in Microsoft to pull this off so comfortably.
No kidding they have a huge gap to jump alex. So how about no company not try to do it. Somebody has to do it. And somehow I think they wiill. There is just enough evidence to say it will fail and enough to say it won’t. The ultimate test will be when it finally releases then we can both properly crotique it.
Apple has sat around and not innovated with Apple/iTunes and are becoming more and more vulnerable. I remember saying that I would definately upgrade to the nano/video before each announcement expecting some new killer features like wifi or bluetooth. But two years later, I still have my mini. The technology has not changed that much to require an upgrade. It is reminiscent of sony and the ps2 when they refused to recognize the benefit of xbox live. In the next generation, they are playing catch up.
I am excited about the possibility of zune, and I have owned iPods for a long time.
Exactly my point Matthew. Few realize what potential is available for Microsoft. Even though there is a huge gap in the field of Brand Loyalty does not mean it will be hard to squash their following with this new following. I still love my Shuffle but at one point and another we all want to move onto something different when we tire of the things we are using. Whether it be another ipod or zune the choice is up to you , but what Microsoft is trying to do is give you an equally competitive choice and thats what we should be looking at.
Your stuff in brackets…
[I had an IPOD until the battery just died out. And what about the new Mac Laptops whose Batterys expand and actually break the casing due to over heating. ]
Tons of batteries systems etc. get recalled, that’s a fact of life. I think it highlights the difference between schematic/lab measured efficiency and durability under actual conditions.
However, is the discussion about Apple v. Microsoft? I was quite focused on Microsoft’s problems internally. It is just as important to look at the broader picture of MS competitive landscape and their future “digital hub” strategy …
Sony (PSP, mp3 walkmans AND phones, PS2,)
MS (Zune/Xbox360)
Apple (ipod.)
[Whether or not your a “Scientist” does not make you any smarter on marketing a product. Nor am I saying I am myself. But the fact that you say
“All I do not see “unlimited” money as a significant advantage, I see the software / crushing their existing vendors as Microsoft’s largest short-term advantage. However, in the long term, I am very concerned about Microsoft’s focus as well as credibility with hardware producers. ”
I do not see this. What I do see is Apples unbalanced track its going. So far they seemed to tottaly shift their gears to the ipod. After a while the Ipod fad will die and then what? Currently when someone thinks of Apple they think IPod. ]
Again, I am examining Microsoft’s shift in strategy. I would definitely agree, marketing is much more of an art and not a science… However, I’m not sure I would give Microsoft a distinct advantage in that area over some of the existing players. Sony, Apple, and Samsung are quite good at marketing products both in the US, EU and Japan (although Sony has taken a beating recently). Furthermore, marketing does not matter much if consumers do not enjoy the product.
I do not quite understand what you are saying in regards to “Apples unbalanced track.” You seem to imply that Apple is no longer going to be successful, and as a result Microsoft’s unproven strategy in the space will succeed?
I think you are advancing an argument about Apple’s long-term strategy as well as Microsoft’s reaction to that strategy. However, Apple does not have a habit of pre-announcing products or initiatives…the “just do it” (like with the Nike add-on).
As a result it is extremely hard to compare MS new announced future to Apple’s future, it is far easier to comment on the info MS has released.
[Why would Microsoft would do this is easy. If you fill the market with a competitive product such as Zune than Apple will become flustered feeling their product “Ipod” is losing marketshare and will keep their minds on their digital music product more then their software development.]
Ok, you seem to be implying Apple can not participate in several related markets at the same time. I definitely do not agree with this, I think they are actually extremely focused in comparison to other companies in the space.
Most importantly, Zune does not exist yet in the wild.
It is extremely hard to compare an existing product array to something that is probably in a state of flux. (even minor changes could make a huge difference things like pricing, colors, supply chain management, shelf space in major retailers, manufacturing centers, circuit components, NEW software etc…)
[How would Wall Street kill this product? As an Investor this is a Huge deal in whether one should sell their apple stock or not. Because I dont think alot of investors will be happy if Apple stocks drop because Zune is a successful product.]
Wall Street will crush the MS vendors who participated in Play for Sure and were counting on MS for technology. It is pretty clear their own technology provider, MS, does not believe they have a future.
Below is my original quote.
“Wall Street will absolutely crush Creative, Napster, iRiver and San Disk, (it seems they got steamrolled and worse yet, never saw Microsoft turning on them). Microsoft’s introduction and marketing of the new Zune technology implies that it will be superior to the existing Microsoft technology given to partners. If they succeed, they will almost immediately cannibalize the “not ipod” marketplace.”
I said this was actually Microsoft’s key advantage, they have significant control over the software technology utilized by a lot of mp3 players, pdas, phones and home computers. What if they build the new program into vista and bury windows media player? That’s a significant advantage over existing non-apple market players… can they use it though? Only time will tell.
As far as MS and the street I think it is too early to gauge Wall Street’s reaction to the MS new strategy, it will probably depend on a lot of factors that are just not available yet.
Will the products/strategy benefit or undermine xbox360? Will it delay profitability of the xbox franchise? Will it cause more disarray or will it focus the digital media strategy? What impact will it have on hardware manufacturers?
[My personal opinon is Microsoft is here to prove Apple wrong just as you said. But they are doing it by cornering Apple into a music fad war. What long-term objective would there be for this for Microsoft? How long will the Ipod remain a hot item? Until another item replaces it. And its kinda akward and disturbing Microsoft is just annoucncing this right on the heels of releasing vista. It seems like Microsoft is going for a 1-2 knockout punch here, and the momenteum behind it is disturbing in the fact that is superbly well cordinated. Very unilike Microsoft.]
I do not really see it as Microsoft v. Apple, after all there are a large number of former partners Microsoft needs to placate and compete with as well.
Microsoft’s strategic announcement is more damaging to those smaller players than Apple. Sandisk, Tosbiba, Creative and iRiver all have excellent alternatives with more features than ipods right now. However, this annoucement casts their future into doubt.
So, it is hard to tell at this point how Apple’s stock will be affected. (Or Sony, Samsung and the players capable of competing/partnering to counter an integrated strategy approach).
It is as though you are assuming a best possible MS product AND zero response from Apple, Sony and other players.
I just do not think that scenario is accurate.
The whole market can be shifted by a disruptive strategy…free or subsidized high-capacity music phones (wireless providers), free and/or low-cost hardware off-set by music subscriptions (Amazon).
On the surface, I have yet to see anything disruptive in the announcement by MS.
Right now, I see MS shifting to a strategy they previously said was not going to be successful in the long-run. In fact, they are actually describing it as similar to Apple/iTunes, so it will be interesting to see the actual products they introduce…maybe they have everyone making false comparisons…
However, until they produced something tangible to evaluate…..
I predict Balmer throwing more chairs.
Regarding the Rabbit, I think I understand where that is coming from and the hipster link to PacNW and all. But that fact that it comes from MS gives it a whole different context. To me it looks like an animated sketch of a bedraggled Steve Ballmer feeling up a bunny rabbit while a Lilliputian sized child looks on and eventually joins in. The resolving slogan is “We’re all friends here…” but hmmm rubbing bunnies, Coming, Zune?