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Zunelicious

Zunelicious is a blog that covers Microsoft's new Zune MP3 player, and all the news that goes along with it.

Saturday, October 14, 2006


The Zune will NOT loose money as many have speculated it would.

In a recent Q and A session with Newsweek, Ballmer has come out saying that it won't loose money...but it won't make much money either.



"Apple (AAPL) put the hammer down there, dropped the price down to $249. If they had been $299, it would have been nicer. They have the advantage of scale. So we're at $249, too. We don't make a lot of money, not to start out."

He then went on to talk about the Zune, and how it was monotizing software through hardware sales by saying,

"Because the value of Zune, if we're successful, is all in the software. It's in community [the ability to share music and pictures with other Zune users]. I want to squirt you a picture of my kids. You want to squirt me back a video of your vacation. That's a software experience. The truth is, though, if it makes money, it will be built into the gross margin on the hardware. We'll figure out how to make money on the community perhaps later though advertising or other means."


I didn't know "squirting" was what Zune to Zune sharing was being called...;)

-Charlie
posted by zunelicious, 6:46 PM

3 Comments:

Microsoft's senior director of product marketing talks to Reuters:

SEATTLE (Reuters) - Microsoft Corp. said on Thursday its new Zune music player will be sold at a price matching Apple Computer Inc.'s market-leading iPod and, as a result, lose money this holiday season. "We're not going to be profitable this holiday but the Zune project is a multiyear strategy."
commented by Blogger superbaka, 7:06 PM  
I still dont' understand what he means by advertising... Hopefully he means on the marketplace not our Zunes!
commented by Blogger Woody56292, 7:57 PM  
See Also:

I have recently bought a new Zune and I love playing games on my zune ! Check out this site which provides all updates about new Zune games and movies
and also gives a nice review of top Zune download services

Free Zune Movies Games & Music - Discover The Sites For Unlimited Free Zune Downloads

Best Zune Download Sites - Discovering Sites For Zune Videos, Games, Movies & Other Applications
commented by Blogger PSP News Finder, 12:46 AM  

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