MacDailyNews - Where Mac news comes first

 MacDailyNews Poll

Deal of the Day

5 Day Most Commented

Opinion Archive

Current Headlines

Latest Joy of Tech

  • Latest Joy of Tech!

MacNN

AppleInsider

Macworld UK

TUAW

MacRumors

Yahoo! Finance AAPL

iTunes Top 10 Albums

Mac OS X Downloads

Sat, Nov 21, 2009 - 07:31 AM EST  —  AAPL: 199.92 (-0.59, -0.29%)  |  NASDAQ: 2146.04 (-10.78, -0.5%)

The Motley Fool’s Munarriz: ‘Kill the Zune, Microsoft’
Friday, May 23, 2008 - 03:12 PM EST

The Motley Fool's Rick Aristotle Munarriz today suggests "a mercy killing for the Zune."

Munarriz asks, "Now that even GameStop is getting out of the Zune-selling business, isn't it just a matter of time before the player itself becomes a museum piece?"

GameStop may not seem like an apt yardstick for the Zune's fortunes, but consider this:
• GameStop sells a ton of Xbox 360 systems and games, so it's a hotbed of Microsoft fans.
• The chain proudly sells used games and gear. If a company would rather stock dusty copies of Madden '06 than a Zune, what does that tell you?
• The company noted during yesterday's conference call that gross margins on the hardware side slid this past quarter, based on the move to discontinue Zunes. If Zunes are doing so poorly that GameStop would rather be moving hardware with lower margins, they must have really been collecting dust.
• With stand-alone CD shops disappearing, GameStop is a good retail gauge of the pulse of music-loving youth.


Munarriz writes, "Apple is looking to move five times as many of its pricey iPhones this year than all the Zunes Microsoft has sold to date... I get why Microsoft wants to bury the iPod. The player's success created a halo effect, winning over Mac converts. They're using Mac's operating system over Windows, surfing on Safari instead of Explorer, and not necessarily relying on Microsoft Office, even though it's popular and available for the Mac."

"Unfortunately, there comes a point when persistence becomes embarrassment... When you've worn out your welcome with small-box GameStop shops and their audience of Xbox fanboys, it's probably time for a change of Zunery," Munarriz explains.

More fun in the full article here.

MacDailyNews Take: CNBC's Jim Goldman, interviewed Steve Jobs back in January: "I told Jobs that I had sat down with Microsoft's Robbie Bach last week at the Consumer Electronics Show. I mentioned that Bach was particularly optimistic about the new Zune, that it was now a worthy alternative to Apple's iPod. Asked Jobs: 'Was he inebriated? Do you even know anyone who owns a Zune?'"


Bookmark and Share

Always -- Free ground shipping with orders over $50 at the Apple Store.

Reader Feedback: = registered.
Unregistered users: Feedback from multiple usernames are subject to deletion. Off-topic and posts from suspected astroturfers will be removed.

May 23, 08 - 02:21 pm Comment from: BiZarRo BaLlmEr

good points..ouch. MS has already ditched Plays for sure. If they kill Zune, how do you save face.
Zune is init for the long haul, any sales are good sales.

May 23, 08 - 02:28 pm Comment from: Steve

Well, that's easy to see. It doesn't take a brain surgeon to notice they've omitted solitaire! Who wants this thing?

May 23, 08 - 02:28 pm Comment from: Predrag

No face for Ballmer to save. As they would say it back home, his face is as hard as a sole of his shoe.

Any guesses when Zune plug would be pulled? Does anyone here believe they would actually pull the plug at all anytime soon? They just might be stubbornly willing to bleed money on this, trying to prove some point somewhere. That, in fact, might be the best; let them keep shifting their focus from (money losing) X-Box, to (money-losing) Zune, to (money-losing) Yahoo acquisition plans... That way, their next effort at OS will be even greater success than Vista!

May 23, 08 - 02:29 pm Comment from: macoverdose_dot_com

it was DOA anyway. I'm still shocked they sold 2 million of them.

May 23, 08 - 02:29 pm Comment from: qka

Oh the humanity!

MS has ben criticized for the upcoming shut down the PlayedForSure servers. How long would they leave the servers up for those zuckers who got zuned?

May 23, 08 - 02:37 pm Comment from: qka

From the article:

Even Research In Motion's new BlackBerry Bold smartphone syncs up to Apple's iTunes, further entrenching Apple as the digital-delivery standard.

True? False? Anyone else know of this?

May 23, 08 - 02:38 pm Comment from: January 24, 1984

The real question is this: How many Zunes are actually loaded with music, and in use?

I've never seen one in the wild.

Not one.

May 23, 08 - 02:46 pm Comment from: MCCFR

I disagree!

MSFT should persist with Zune and not give in to the realities of the market.

This is based on the same philosophy that says that the omelette-dodging Ballmer should stay on as CEO for as long as possible.

May 23, 08 - 02:48 pm Comment from: Falkirk

This is a bad forum to post this query since there's a tendency to mindlessly bash Microsoft no matter what. But honestly, what was Microsoft thinking of?

When the Zune came out it was almost like they went out of their way to throw up barriers to it's success like using a point system and reducing the number of songs that could play on it by making it incompatible with PlaysForSure (Irony, thy name be PlaysForSure).

But more importantly, how could they think that the Zune would be successful when all they were doing was copying the last generation iPod and setting up their own incompatible version of iTunes? Microsoft has a lot of smart people. But the first thing you do in creating a product is to create points of differentiation from your competitors product. They just copied the iPod - an older iPod at that - and thought that people would flock to them because they were Microsoft? Are they that myopic?

May 23, 08 - 02:50 pm Comment from: Think

Once again, a decade from now, college marketing classes will have the one day "How not to make a ZUNE mistake", they will explain to all the fresh faces how MS made the biggest marketing/product mistake in many many years.

Hahahahahahahahahahaha!

Just desserts for all the MS early years when they put so many small companies out of business by stealing their software ideas.

May 23, 08 - 02:53 pm Comment from: GizmoDan

The Motley Fool article says "Even Research In Motion's new BlackBerry Bold smartphone syncs up to Apple's iTunes, further entrenching Apple as the digital-delivery standard."

Is this true? Could not find any firm evidence of this, and it seems like it would have been HUGE news . . .

May 23, 08 - 02:59 pm Comment from: GizmoDan

@ Falkirk
You asked about M$, "are they that myopic?"

YES. Why else would they think that Vista would generate a good version of "Wow"?

I think we are witnessing thousands of M$ employees in denial. (and a lot of journalists and IT guys, too.)

Can you breathe with your head in the sand like that?

May 23, 08 - 02:59 pm Comment from: dave

What would be more relevant is how many actually were sold to end-users. MS shipped 2 million to the distributors, but from all the articles I've read, there aren't many people who actually admit to purchasing one.

May 23, 08 - 02:59 pm Comment from: Artist

"Unfortunately, there comes a point when persistence becomes embarrassment"

Somebody should tell Hillary that.

May 23, 08 - 03:00 pm Comment from: Buster

",,,there's a tendency to mindlessly bash Microsoft..."

Not true. We indeed think about it when we bash them. I think you are thinking more about the frequency which in itself speaks volumes about MS.

May 23, 08 - 03:02 pm Comment from: ChrissyOne

I'm always very mindful of my Microsoft bashing.

May 23, 08 - 03:05 pm Comment from: Brau

MS chairman Steve B.Lamer is sure to fault the third party devs for their lack of support ... because we all know any Windows based products have that "WOW" factor (as in ... Wow! This is total crap!). wink I mean, just look at their sales ... nobody buys an Xbox for the latest game, and consumers buy cheap PCs because they love Windows ... right?

WOW =
Wheedling Old Wankers
We Oughtta Wait
Worthless Old Wares

May 23, 08 - 03:05 pm Comment from: AAPLguy

"Was he inebriated? Do you even know anyone who owns a Zune?"

That quote always makes me laugh.

May 23, 08 - 03:06 pm Comment from: ericdano

Actually, couple this with the news earlier that they are exploring ads with the Zune, and you can see what the next Zune will be. Free access to 6 million songs (though you have to suffer ads). That is where they are going with the Zune.

May 23, 08 - 03:10 pm Comment from: ChrissyOne

@ Predrag

Here is my original prediction, as posted on my blog:
======================================

Zuned!!!
Post: 2006-11-15 07:42:49, Modified: 2006-11-22 07:10:35
So... I might have been a little hasty on my Zune prediction.

Microsoft launched Zune yesterday, and the reviews just keep pouring in. The consensus?

IT STINKS!
So when I said 18 months, I think I was being a little generous. I wonder if they sold a single unit yesterday.

Still, Microsoft never seems to know when they`re beaten, OR when they`re winning. So maybe they`ll dump money into this revenue vaccum until it becomes embarassing even for them (and it must take a lot to embarass Steve Ballmer).

I guess for now I`ll stick with 18 months from launch date (yesterday, November 14th 2006) so that would be roughly May, 2008.

Will it last that long?

Time will tell.

-c


So here we are in May 2008, and the iPod Killer has sold all of 2 million units. How much longer can it last? I don't underestimate the power of Microsoft's ability to stubbornly refuse defeat. I'm sure in their minds they've won a victory, based on a drastically downsized objective ("solid #2") but then, they don't even have that.

It looks like they might last a little longer, but I don't think Zune Tang should put away his hammer just yet.

-c

May 23, 08 - 03:21 pm Comment from: Raymond in DC

Writes Think, "a decade from now, college marketing classes will have the one day "How not to make a ZUNE mistake"" It reminds me of a Simpsons episode where a series of buffoonish, clumsy actions by our favorite dolt each somehow succeeded. It was popularly called "pulling a Homer". Given Microsoft's serial failures, maybe it'll come to be known as "pulling a Zune".

Jobs: "Was he inebriated? Do you even know anyone who owns a Zune?" Sun's McNealy was known for his Microsoft bashing, but it rarely stuck. Jobs remarks stick because we recognize them as the distilled truth, and because Steve has cred.

May 23, 08 - 03:32 pm Comment from: boulderfrog

I'd love to see that interview with Ballmer where he brags about zune sales and laughs about the iPhone. Stupid prick.

May 23, 08 - 03:50 pm Comment from: Zune Tang®

No hammer will be necessary, ChrissyOne, unless you're talking about putting your crappy I-Phone out of its misery. I've enjoyed every minute of the magnificent Zune ride for the past 18 months, thank you, and it keeps getting better. Who saw Microsoft implementing ads on the Zune? Nobody. Another revolutionary innovation from the masters in Redmond. I can't wait to see what's next.

I have FM, squirting, points, ads, and brown. How about you I-Pod lemmings? No? How does it feel for you I-Pod losers to get your ass kicked every day by Zune?

Your potential. Our passion.™

May 23, 08 - 03:54 pm Comment from: alansky

Microsoft is long past any possibility of saving face, and they have much bigger problems than the fate of the Zune. For starters, there's Vista. All that's saving Microsoft from dying of embarrassment is arrogance and greed.

This is one of those moments in history when one can't help recalling the story of "The Emperor's New Clothes." How many times does Microsoft have to stumble and fart before anyone (in the mainstream, that is) dares to notice?

May 23, 08 - 04:09 pm Comment from: Pokey Mon

The only way Zune can remain alive is if it morphs into X-Box portable. But they're already too late to that party with the iPhone/Touch apps about to come out...

May 23, 08 - 04:15 pm Comment from: Paul Zune's Dork

"No hammer will be necessary, ChrissyOne, unless you're talking about putting your crappy I-Phone out of its misery. I've enjoyed every minute of the magnificent Zune ride for the past 18 months, thank you, and it keeps getting better. Who saw Microsoft implementing ads on the Zune? Nobody. Another revolutionary innovation from the masters in Redmond. I can't wait to see what's next.

I have FM, squirting, points, ads, and brown. How about you I-Pod lemmings? No? How does it feel for you I-Pod losers to get your ass kicked every day by Zune?"

One of your finest yet. :-D

May 23, 08 - 04:19 pm Comment from: Macs King

Actually, MS only sold "three" Zunes, the others were given away as promotional items.

PS: One of the three sold was returned for refund.

May 23, 08 - 04:22 pm Comment from: Asmodeus

@Raymond in DC: Writes Think, "a decade from now, college marketing classes will have the one day "How not to make a ZUNE mistake"" It reminds me of a Simpsons episode where a series of buffoonish, clumsy actions by our favorite dolt each somehow succeeded. It was popularly called "pulling a Homer". Given Microsoft's serial failures, maybe it'll come to be known as "pulling a Zune".

It'll be synonymous to "jumping the shark". Remember that one?

May 23, 08 - 04:26 pm Comment from: Jubei

Techcrunch has a great headline. LOL

Deathwatch: GameStop Dumps the Zune Because Nobody Wants It

May 23, 08 - 04:34 pm Comment from: ChrissyOne

@ PZ'sD

I concur. That was elegant, ZT.

May 23, 08 - 04:51 pm Comment from: John B

Go visit zunescene.com for an idea of how popular the Zune is. Based on what I've seen there, there are easily hundreds of Zune owners around. And they all seem to love their Zune and hate anything Apple. Oh, and they're currently talking about new models and a European release. With its availability in Europe, the number of actual users could climb into the thousands. I think it will be a long, long time before the Zune is euthanized.

May 23, 08 - 04:55 pm Comment from: Rip Ragged

@Zune Tang

You are my hero. You're right, of course. Killing the Zune would be redundant.

May 23, 08 - 04:58 pm Comment from: Rip Ragged

@ Sloop John B

Be careful. Zune Tang will get jealous.

"... easily hundreds of Zune owners...,""... could climb into the thousands."

Stop. Stop. I can't breathe.

May 23, 08 - 05:45 pm Comment from: LOL

More and more people are just fed up with M$.
Now that there are viable and healthy alternatives, people are beginning to realize that on the cheap and poorly made is not always of benefit.
As I have said a few times before, the net is creating a new generation of informed people that will seek answers.
We have consumers that are fed up with plain old junk.

May 23, 08 - 05:55 pm Comment from: Zune Tang®

@ChrissyOne

Elegant?

Typical smug word usage you'd expect from a MAC lemming—and I have to say I'm more than a little offended. 'Elegant' is a word you might use to describe your overpriced, proprietary MACs or I-Pods.

If you want to butter me up say my comment was unrefined and ugly. Us Windows and Zune enthusiasts find the lack of sophistication and unfashionable nature of Microsoft's products very appealing.

Your potential. Our passion.™

May 23, 08 - 06:16 pm Comment from: ChrissyOne

Bravo! Your writing is truly elite.

May 23, 08 - 06:37 pm Comment from: Zune Tang®

Ugh.

Your potential. Our passion.™

May 23, 08 - 06:43 pm Comment from: ChaseWebb

My God Zune Tang, you're a genius.

@JohnB
Wow, I visited that website and spent a few minutes on the forums. I'm surprised that there are that there are that many delusional people in this world. One post said, "The only for Apple to catch up to Microsoft is to install Windows." [CoughBScough]

May 23, 08 - 06:44 pm Comment from: Jubei

@John B

You failed to point out the hundred of users who has given up on Zune, and switched to iPods/Touch. They still post there and usually pisses off the others. Specially when a moderator switches away from Zune. Now thats funny stuff. LOL

May 23, 08 - 07:03 pm Comment from: ChrissyOne

So much style. So much taste.

May 23, 08 - 07:27 pm Comment from: Walter Chillum

I still haven't seen one person with a Zune, not one! I even asked my students and they haven't seen anyone with one either.

May 23, 08 - 08:05 pm Comment from: BillH

Forget about discontinuing the Zune. Who would notice anyway? I think that people should discontinue saying that "Microsoft has a lot of smart people working for it". There has been no evidence of that for years!

May 23, 08 - 08:10 pm Comment from: neo-zeon

the only Zune that I have seen was at Fry's and it was not even the real thing, it was just a empty shell.

So when the Zune gets discontinued, I guess that means no more Zune Tang. Whooh hooo...

May 23, 08 - 09:01 pm Comment from: Evil Twin

MS your copy-cat days are numbered.

MW: figures

May 23, 08 - 09:23 pm Comment from: MacRaven

Ballmer's face is the last thing on the planet I'd want to save.

May 23, 08 - 10:12 pm Comment from: Ray

Jobs asked the same question I always ask. I just go up to tech savvy ppl I know and I ask a) If they have a Zune and b) do they have a Zune?

I have yet to get a yes.

just my $0.02

May 23, 08 - 10:26 pm Comment from: Derrick

Anyone remember that moron that was on Digg who had a Zune tattoo on his arm. What's that idiot going to feel like in a year when even Microsoft wipes their hand sof this abomination?

May 24, 08 - 12:59 am Comment from: ken1w

Microsoft needs to focus on getting a version of Windows released that people actually want to pay for separately, instead of relying "sales" of Vista that come with new PCs by default.

Things like Zune and the Yahoo merger are self-induced distractions, because Microsoft knows Windows has hit a brick wall. There's not enough "innovation" or even motivation left at Microsoft to do what needs to be done with Windows.

May 24, 08 - 03:15 am Comment from: Dev Singh

MS copies EVERYTHING ;

http://www.macmothership.com/gallery/newads15/85flyer1.jpg

May 24, 08 - 03:26 am Comment from: John C. Randolph

" I'm still shocked they sold 2 million of them."

I don't believe they did. They might have managed to channel-stuff two million units, but a zune gathering dust on a wal-mart shelf doesn't count as a sale in my book.

-jcr

Reader feedback page 1 of 2 pages:  1 2 >

Always -- Free ground shipping with orders over $50 at the Apple Store.

Add Your Feedback:

Register or Login

Name:

Email: (optional)

Emoticons | Allowed HTML Tags

Remember my info   Notify me of follow-up comments?

Please enter the "MDN Magic Word" you see in the image below: