Microsoft’s 30GB digital media player with a twist may have just stolen the thunder from Apple’s iPod with its unique social networking feature. Dubbed the “iPod killer” by blogwatchers and industry watchers alike since the time of its announcement, the two features that could indeed establish Zune as the “iPod killer” is its social networking capability and the ability to connect across a network of devices.
Zune’s social networking capability will be based in Zune Marketplace, the equivalent of iTunes. Zune will, in the near future, be able to connect across to the Microsoft PC, Xbox, television, and so on, thus taking a lead over Apple’s inter-connection plans with iTV (announced earlier this week). “We feel that music is inherently social. The ability to share music from device to device allows people to discover new options/new experiences, and that is very important. That is how we are going to change the current digital media space.”, says Chris Stephenson, GM Global Marketing Zune On the social abilities of zune.
First, we heard this morning from David Caulton of Microsoft’s Zune team that “Zune won’t be undercut on price by iPod”. Then Gizmodo leaked a story indicating that Microsoft met yesterday to determine the price of the first Zune player.
Apparently Microsoft had initially set $289.99, to undercut iPod’s $299 price for its 30GB player. But after last week’s price breaks from Apple, knocking the 30GB to $249, Microsoft pushed the price down to $229.99.
We’re loving the aggressiveness of Microsoft’s pricing. It’s a clear gauntlet-drop - and says a lot about Microsoft’s determination to grab a generous slice of Apple’s pie.
“Microsoft Corp. said on Thursday a Zune-branded phone is part of its future plans to expand in the digital music market, now dominated by Apple Computer Inc.’s iPod. “A Zune phone is definitely part of the future of this brand,” Chris Stephenson, general manager of global marketing for Zune, told reporters at a news conference. He did not give specific details.”
Bomb…dropped. A Zune phone? That sure came out of left field - what about Windows Mobile and Smartphones? If the Zune brand is a Microsoft “we build it” solution, that means Chris Stephenson is saying that Microsoft is going to build their own phones. That’s one wild concept when you consider the impact it might have on Windows Mobile, all the partners Microsoft has, the carriers, and everyone else invested in the current offering. What about Photon, the next-generation version of Windows Mobile? This simple statement from Chris Stepheson is a bombshell - and it spawns dozens of questions.
My five-minutes-of-thinking-about-it take? Windows Mobile will continue moving forward, and Photon will stay on track. The Zune phone will be a narrow solution specifically aimed at the music-loving phone users, and be 100% entertainment-centric, lacking in the personal information management goodies we’ve come to expect from Windows Mobile phones. It will have a great media experience, but will be closer to a feature phone than a real Smartphone. In fact, I’m guessing it will be application-locked just like Portable Media Centers are - meaning no third party applications can be installed on it. So, in some ways, it will just be a really slick “dumbphone”.
I asked a Microsoft spokesperson for an official response, and here’s what she said: “Zune is all about connecting people to their music. It makes sense that Zune could be a part of a phone experience. But there has been no determination of how that will be executed or when it will happen.”
