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Why Zune Failed

In: Business and Management

Submitted By priti81
Words 2260
Pages 10
The Zune
Microsoft first introduced this portable media player in 2006, with several new generations of the device to follow. The Zune faced several major challenges: namely, inevitable comparisons to the iPod, which rules the portable media marketplace, and the fact that its software is only available for Windows (so far). In a financial report covering the fiscal quarter ending in December 2008, Microsoft said Zune revenues had decreased by 54%, or $100 million. Learner blames the bust on several factors, including software that was constantly changing and iPod's head start of several years in the market
Microsoft killed the Zune once and for all in October of 2011.

Former Microsoft Exec: Zune Failed Because The Music Industry Was “Hooked” On Apple
We all remember the Zune. Microsoft’s failed attempt at an iPod competitor gained about as much traction as Windows Phone 7 has during the last two years. Apple already had its hands around the music industry’s neck with the iPod and iTunes — there was no room for something like the Zune. It wasn’t that the Zune was a bad product, it was just too late to the game.
Former Microsoft executive Robbie Bach was in charge of the Zune division, and in a recent interview he acknowledges that Microsoft made a mistake releasing the Zune in the first place.
In an interview with Wired’s GeekWire:
“If I had hindsight, 20-20, and could do Zune over again, we would skip portable media players completely. We would go to what, at the time, was the Windows Mobile team and say we’re going to produce the coolest music service for your phones ever. The portable music market is gone and it was already leaving when we started. We just weren’t brave enough, honestly, and we ended up chasing Apple with…...

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