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Zune price cuts

Wow, it’s been a busy week for Zune news. :) We had the unexpected Zune 3.1 update, the huge Zune Pass update, and now this… Microsoft is significantly cutting the price of most of its Zune players and some accessories. I’ve argued since Microsoft launched the Zune that it needs to undercut Apple’s pricing on comparable player models in order to make headway in this market. And now it seems like they finally get that. Good for them.

From the Zune Insider blog, of course:

Just in time for the holidays: a flash-based device and accessory price cut for the US and Canada. You may have seen some chatter last week about lower priced devices at certain retailers, well we are happy to “officially” announce that the lower prices can be found at Zune Originals and all our major retail partners (all prices listed in USD, and are only suggested prices). Check the list:

Product         New Price         Old Price         Change
Zune 4GB        $99.99            $129.99           -$30
Zune 8GB        $139.99           $149.99           -$10
Zune 16GB       $179.99           $199.99           -$20
Car Pack        $69.99            $79.99            -$10
Home/AV Pack    $59.99            $79.99            -$20
Dock Pack       $39.99            $49.99            -$10

Ok, happy shopping!

This is awesome news. I only wish the Zune 120 had gotten a price cut as well.

Published Nov 20 2008, 10:31 AM by pthurrott
Filed under:

Comments

 

Master3 said:

I want a price cut on the 80!

But that 4GB going for $99.99 is looking pretty good.

November 20, 2008 9:38 AM
 

subzerohitman721 said:

If you really want to undercut Apple's iPod, they need to drop the 80 GB and 120 GB to spur sales. Unless they severely undercut the iPod, I don't think it will do much to spur sales or transfer people over. As for me, I'm still looking to upgrade to a higher GB iPod.

Never the less, its a good move. I'm always a big fan of lower prices.

November 20, 2008 10:19 AM
 

mikegalos@msn.com said:

subzero

Since Apple's dropped their top of the line "iPod Classic" and did no changes to their remaining model, it's likely that hard drive based music players are becoming a niche market and the competition's in the flash memory based units.

November 20, 2008 10:29 AM
 

DRWAM said:

The Zune ad on SciFi channel two nights ago did mention the price of one or two models, but seem to focus on the version 3 update. It didn't use 3.0 or 3.1, but just showed 3.

November 20, 2008 10:29 AM
 

panache1023 said:

The real "issue" with flash based music players today, is that Flash memory is still too expensive to be able to store your full music collection...or maybe even a dent...plus movies, etc.

I have a 16GB iPod Touch...I love it....I previously had a 20GB iPod, so it wasn't that big of a deal to drop 4GB in size....however, I *REALLY* want a 120GB iPod Touch....or, for you Zune people...wouldn't you love a 120 GB Flash Zune?  My guess would be yes if the price was right and you wanted that much storage space.

November 20, 2008 11:47 AM
 

bettieblu said:

MS is making some good moves with the price drop that is for sure, and the software is finally good.  Version 1.0 had to be the worst software I have ever used.

Still its a tough, tough battle that only MS cant even attempt to wage because of its mountain of money.

I think HD based MP3 players are rapidly on their way out.  In 5 years even consumer PC's will probably be mostly SSD.  It wont be long before there are 64gig flash versions of the iTouch or Zune.

In the low end market (shuffle/Nano) MS has the biggest chance.  Its feature set is better hands down, and with the price drops its really going after that market.  Still tough to fight Apple at all in this market.  I know people that call any MP3 player an iPod no matter who makes it, that is the definition of established, iPod is a house hold name.

On the top end the Zune just cant compete.  The only thing its got going for it is space on the Zune 120.  The huge amount of content and applications that are available for the iTouch is something MS just cant compete with.

As far as subscription service, I wonder how important that is.  I bet some just cant live with out it.  Others hear a song on the radio, tv, movie and then sample it on iTunes or Amazon and then purchase it....with money, not POINTS.

There are rumor reports going around that iTunes is going to start offering a ton of DRM free music, staring with Sony.

OT Xbox 360 got its Wii dashboard update yesterday or Tuesday.  It comes with the netflix piece to view movies.  Sony pulled all movies from Netflix if you access Netflix online via the 360, over 600 movies from what I read.  Ahh the battle goes on at all fronts:)

November 20, 2008 11:50 AM
 

mikegalos@msn.com said:

The misconception of having your brand become a generic phrase is that it corresponds into continued sales.

A lot of people who call any facial tissue "Kleenex" buy Puffs when they shop for "Kleenex"

A lot of people in the southern US who call any carbonated beverage a "Coke" buy Pepsi when they shop for "Coke"

I'm sure Microsoft would be just fine with people buying a Zune when they shop for an "iPod".

November 20, 2008 12:14 PM
 

bettieblu said:

Lol Mike, way to turn that around in favor of MS and downplay the Apple advantage.  In this case, so far, that is NOT what is happening...at all.

November 20, 2008 12:31 PM
 

shark47 said:

"OT Xbox 360 got its Wii dashboard update yesterday or Tuesday."

Wii dashboard update? Just because avatars or whatever are similar to Miis? Wow! That's just silly.

November 20, 2008 12:32 PM
 

timiteh said:

Well it could also help that Microsoft finally decide to sell zune outside U.S as i would be quite interested to buy one but i can't because it is sold neither where i live nor where i can easily order it >:(

November 20, 2008 12:46 PM
 

mikegalos@msn.com said:

Actually, bettieblu, I only pointed out that a brand name going generic doesn't automatically offer an advantage for the company that lost control of that brand name.

Now, how is that turning anything "in favor of MS"?

Really, I'm quite curious about the logic.

November 20, 2008 1:06 PM
 

bettieblu said:

Silly but I have seen it described that way in many articles.  

My 360 has not been on a network since July, maybe I will plug it in and check it out.  The screen shots I have seen make it look like the Wii avatars.

November 20, 2008 1:15 PM
 

bettieblu said:

Mike your right.  You only pointed out that its note helpful for Apple, based on????  Your dislike of all things Apple?

November 20, 2008 1:18 PM
 

treestman said:

But the 4GB is dead, so this is essentially a blowout sale. A shame, really, as I think there's still a place for a 4GB player. I guess MS will kill it because Apple doesn't have one, but I think it's a mistake.

As for the others, is a $10 price cut really going to turn someone to an 8GB Zune that otherwise wanted an iPod? Not sure that's enough.

I think the big Zune news today is the changes to Zune pass. Now the $15 a month gets you 10 free DRM-free tracks to keep. If one assumes they'd buy 10 songs a month anyway (for $10), then the full subscription service could be considered to be only $5 a month. That makes it much, much more compelling for thise considering a subscription service,

November 20, 2008 1:27 PM
 

mikegalos@msn.com said:

Actually, bettiblu, I never even mentioned Apple.

November 20, 2008 1:27 PM
 

bettieblu said:

Lol Mike, but I did.  I said iPod, as in the Apple iPod, is a house hold name, and that I have heard many people refer to any MP3 device as a iPod.  You said that, that kind of recognition does not help.

Sort of like when people say "PC", its usually assumed they mean a personal computer with a version of Windows running on it.

November 20, 2008 1:46 PM
 

mikegalos@msn.com said:

bettieblu

So you accused me of "turn[ing] that around in favor of MS and downplay[ing] the Apple advantage" by my posting a generic comment that wasn't about Apple.

Wow. That says a lot about the filter you use to view the world.

November 20, 2008 2:30 PM
 

bettieblu said:

Actually Mike not filter at all,  I just dont like you and think your a huge gas bag.  I think you live on this site and love to tear anyone down that does not agree with your Microsoft view of everything or points out anything negative with anything Microsoft.  Many have said the same thing.

Your track record speaks volumes for its self.  Anyone on this site knows you took just that piece out my post and tried to diminish it because it was about Apples dominance.  If you can bash Apple remotely you will.  When you cant answer a question put to you because it would prove you wrong you will change the subject.  At that same time in your limited view of the world Microsoft can do no wrong.

If I had said the same thing about MS dominance in a area like say desktop OS'es and how people think PC's are all Windows, you would not have said a thing.  Or if you did you would have said I was right, by linking some study done in from the 70's.

Of course you picked just that out of my whole post.  A post which gave credit to MS and Apple where they excelled and pointed out the challenges that MS has to increasing its market share against the only other real competitor.

Keep posting Mike, you will just prove my point.

November 20, 2008 3:11 PM
 

DRWAM said:

I like ya Mike. Criticism of Apple is often helpful to improvement in the future, or insight to my desktop's potential problems. Can I drive your Lotus now?

November 20, 2008 3:32 PM
 

Dipsh t Admin said:

As of late I wouldn't agree with Mike very often, but I think he is right in this case vis-a-vis the brand name degradation.  The concept of a name becoming generic does have some potential long term issues as it turns it in to more of a commodity than it does represent a brand.  bettiblu it was you who took that out of context.  He never said it was what has happened with the iPod.  Although it came from a biased source, that doesn't automatically mean that the concept is wrong.

I think a better descriptor is Xerox.  I wouldn't touch a piece of Xerox equipment with a 10 foot pole, but the term is still used to represent the generic "copier" equipment.  

November 20, 2008 4:04 PM
 

chuckb84 said:

Mike,

"The misconception of having your brand become a generic phrase is that it corresponds into continued sales.

A lot of people who call any facial tissue "Kleenex" buy Puffs when they shop for "Kleenex"

A lot of people in the southern US who call any carbonated beverage a "Coke" buy Pepsi when they shop for "Coke"

I'm sure Microsoft would be just fine with people buying a Zune when they shop for an "iPod"."

There is some truth to the downside of having a brand name turned into a generic commodity name. Consider "Simonize" as a nearly extinct verb derived from an extinct (or nearly extinct?) product.

However, there is this little thing called the "iTunes Store" which serves to differentiate the iPod from everything else. Strictly for music, this differentiation means less than it used to, although the iTunes store is still easier to use than anything else. However, the "MP3 player" market is now a pretty specialized area, all iPods (and their competitors) do a lot more than that, so the IS adds a lot of product differentiation.

Paul long ago predicted--correctly--that MP3 players would be subsumed into phones. Of course, he got it totally wrong that this would spell doom for the iPod; instead the iPod turned into a "phone", or more correctly, into a portable computing device that is a phone, mp3 player, portable gaming device, GPS, etc.

I'm glad to see Microsoft compete on price; it'll keep Apple honest and might keep Microsoft in the game.

November 20, 2008 4:21 PM
 

shark47 said:

Never say never...

That's all I would say.

November 20, 2008 5:29 PM
 

shark47 said:

"Silly but I have seen it described that way in many articles.  

My 360 has not been on a network since July, maybe I will plug it in and check it out.  The screen shots I have seen make it look like the Wii avatars."

And you're complaining about Mike? They've made a lot of changes, but the only one the media uses to describe it is the one that is "copied". Again, this is just silly!

November 20, 2008 8:09 PM
 

subzerohitman721 said:

@Mike Galos and Bettieblu,

I agree with you both that HD based MP3 players are fading away. I just think its sad. I really do enjoy my 30 GB iPod that I can store both videos and my music. I also agree that eventually when the GB cost comes down that SSD will be the future.

However I'm rapidly closing in on filling up my iPod and I'm contemplating grabbing a 120 GB before they sell out completely.

I also have to agree with Panache 1023 that a 120 GB iPod touch would be sweet. I'm tempted by the zune however, I've made the investment in the iTunes store. I'm happy overall with the service and ease of use. I just don't like the DRM. Hopefully, I hope DRM is on its way out as people manage to smash DRM encryption schemes lately.

As for the New Xbox Experience, as the Zune is apart of the 360 environment, I am pleasantly surprised by it. Trust me, I was a huge skeptic of this update. I've been tinkering with it for a little more than 24 hours. I have got to admit, its very clean and efficient. Its way better than the Wii's UI. The Wii's UI is horrible and feels so beta-ish. The music is annoying. The Avatars are much better in terms of their appearance. Yes, it copy's the Wii's Mii's. I think MS did a better job. The Avatars have feet and clothing. It looks like a more serious console. So I have to give Microsoft credit where its due. The new Xbox Experience is definitely better than I thought. So I'll eat crow and like it on this one.

November 20, 2008 11:41 PM
 

mikegalos@msn.com said:

subzero

While I'd agree that HD based music players are on their way out (and good riddance, a portable device is the last place to put a spinning hunk of metal or glass), I'd suspect first that solid state devices will take up the capacity challenge fairly soon. I do suspect, though, that they won't bother with the extra electronics of an SSD that are needed to make it emulate a spinning platter disk drive.

November 21, 2008 12:40 AM
 

hodari said:

Does any one have numbers of how may Microsoft  zunes are out there compared to Apple ipod ?

November 21, 2008 12:55 AM
 

robertsjoe said:

@mikegalos: "I'm sure Microsoft would be just fine with people buying a Zune when they shop for an "iPod"

But the user wouldn't be so stupid as to actually buy a lame-duck music player like a Zune when they expect the quality and superiority of an iPod.

The Zune is as niche as the Commodore 64 is today.

November 21, 2008 4:02 AM
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