Zune is Down 54% This Quarter
- Dr. Roy Schestowitz
- 2010-02-03 16:22:36 UTC
- Modified: 2010-02-03 16:22:36 UTC
Via OpenBytes
Summary: Microsoft's attempt to enter the market of consumer electronics is rapidly approaching "memorabilia" status
MICROSOFT'S bad results from last week [1, 2, 3]* had Microsoft attempt to divert all attention to a new product, Vista 7, whose sales it stockpiled for almost 2 quarters in order to create an illusion of success (Windows was down 40% in the previous quarter).
One product that received almost no attention last week was
the financial disaster known as "Zune". Here are
the numbers:
Microsoft's Zune is going from bad to worse in terms of sales and many now wonder if this wasn't a good time to axe the project altogether.
According to Microsoft's latest 10-Q filing, the revenue for te Zune platform saw a 54% decrease ($100 million) during the winter quarter, also known as the holidays shopping season.
"Too bad Microsoft abandoned their customers purchasing MP3's from their site several years ago with non-Zune "generic" MP3 players, which also worked fine in Linux," said the person who brought attention to it.€ "After, there was a big push for "Plays for Sure", then nothing when Zune came along.€ € My daughter shortly after bought an iPod."
There are some boring old rumours about something called "Zune Phone", but "Who Cares?" was the
opinion expressed in IDG.
Despite murmurs that Windows Mobile 7 isn't nearly ready, the rumor mill suggests that Microsoft will launch a Zune Phone as early as next month. But it's been so long since the Zune Phone myth originated, it's no longer a big deal.
Zune may soon join the growing list of
dead Microsoft products/divisions.
⬆
____
* Almost everything declined year to year,
despite the Wall Street crash of one year beforehand.
Comments
Chips B. Malroy
2010-02-03 20:51:32
Neither is it likely that MS will just cut the Zune project completely either, for the same reason. But a big cut in the Zune project will mean the same thing as killing it. MS needs to trick buyers into thinking that this product is alive and still being developed, its all PR/lies.
But then there's Ballmer, who should at this point have some sort of clue, that the Zune is a brick that cannot be sold. What does Ballmer need, a sign on the Zune departments door, that says "cut here first?" Zune is the ideal canidate for the next cuts (layoffs) at MS. A small start to stop the bleeding of MS money. ONly a small start, as Zune never really sold much.
Xbox360 is a much bigger problem for MS. Why, because XBox360 does make money on game sales and networking. Although the console sales itself are not money makers, and having to replace them up to 10 times is losing MS lots of money. And they still have a high failure rate after all this time. For this reason, and this reason only (there are many other reason as well) Ballmer and Bach should be shown the door.
Roy Schestowitz
2010-02-03 21:33:34
your_friend
2010-02-04 04:26:27
satipera
2010-02-03 17:14:07
Dennis Murczak
2010-02-03 22:26:13
Roy Schestowitz
2010-02-03 22:59:39