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Actually, he doesn't say anything here. I think people are reading too much into his statements. Remember that Microsoft denied that it was ever going to make an mp3 player until about a couple of months before it was released. Now, I'm not saying it's not possible, but let's not jump to conclusions here.

This makes no sense. didn't MS abansdon Plays For Sure (A software solution) in favor of the hardware tied to the software? Now they are going to go back?

Something seems out of place

I find it odd that Ballmer would make such comments or hint at a product demise.  It is unlike him to do that.  Why would the CEO of a company-given the current state of the times-even hint at a product's demise when you are trying to convince people to buy ANY of your products?  Why the hell should I buy anything from you if you are likely to kill it in a year?

More likely, I think he was taken out of context.  But, then again, I'm one of the 17 that Paul says bought the original Zune.  It's brown, too.

Killing off Zune really doesn't make sense. However, since currently own an iPod and use the iTunes store, I really do not have any stake in Zune's future. But what we're possibly seeing is MIcrosoft abandoning Zune Hardware in favor of supporting multiple devices in the way that Rhapsody, Napster, and Amazon is doing. I would call it a change in strategy more than killing Zune. A mix of a updated WinMo and Zune actually make sense because it would transcend devices and give you greater marketshare.

Let's not forget that late last year (and it may still apply) that Microsoft had job openings in the Zune division. I never looked at them. Did anyone recall what the positions were? That's got to be a sign that not all is bad. I think Ballmer just twisted his own words around.

@sharky - I tend  to agree with you. I think people are reading way too much into this. Ballmer is knjwn to be a buffoon, and this might be one of those moments. Even if they quit making the devices, I think that it is pretty obvious that they are planning to continue the service and port it to phones and other devices. Cesar Menendez commented on MJF's blog about it and also showed a lot of great stuff at zuneinsider - zuneinsider.com/.../snaps-zune-booth-at-ces.aspx

Of course, the Apple fanatics are all over this...just like the flys on crap...but that is expected.

--tayme

I'd say that Ballmer's words (as much as I've actually seen them) don't really imply what the writer inferred.

Here's what the Zune team said about the comments from the Zune Insider blog on Friday:

===========================

There's been a lot of speculation today about some comments made about Zune in the Financial Times.  Since Cesar is on his way down to Vegas for CES, I wanted to jump in with a little context...

We've been saying for some time that our strategy for Zune is to provide a great entertainment experience across multiple screens and devices.  Software and services have always been at the core of this strategy - this is nothing new.  Today, this means a great Zune experience on the PC and portable Zune devices, and as we have said before we think it makes sense to extend that experience to other devices in the future.

As always, thanks for everyone's support.

And for those seeking a clearer statement, this is what Cesar posted on Mary Jo Foley's blog:

======================================

Hi folks,

Cesar from Zuneinsider.com here -

In answer to the question from this post: Yes. We are going to remain in the first party hardware business, along with bringing Zune software services onto more screens and devices.

Cesar almost has to say that.  He's a marketing guy.  But he makes no decsions, and the decision makers are waffling...

Bach echos Ballmer:

>>We have already started to see some flattening and even declining in the stand-alone MP3 player market. I think you'll see that continue. As phones get more capable, as battery life gets better, people's desire to have their music with them along with their phone is certainly going to go up.

I don't think the portable media category goes away. I just think it's not going to be where most of the growth is. We have some great assets in the software we do for the Zune -- both on the PC and on the Zune device -- as well as the services we provide -- Zune Social, Zune Marketplace. We see opportunities for those beyond what we do on the device itself.<<

seattlepi.nwsource.com/.../395368_msftbach09.html

(and I'll note that Thurrot is now posting as blog entries my comments I've made...)

On the flip side, Bach here says they plan on continuing the hardware series:

>>

All I would say on that topic is you have to think of Zune as a great piece of hardware that we’re going to develop, as well as a great set of software and services assets that we intend to fully utilize.

>>

www.techflash.com/QA_Microsofts_Robbie_Bach_on_games_phones_and_Zune_glitch37268609.html

I'd say (OT) that MS learned well the lesson that Nintendo taught them:

>>Anxiously awaiting the next round of game hardware? You'll be waiting a while, says Robbie Bach.

--

"Just coming up with something that's faster and prettier isn't going to be sufficient.<<

Analysis:

>>Coming up with something merely "faster and prettier" is precisely what caused Microsoft and Sony to lose this generation. This is not to say that the next round of videogame consoles will all be based on the Wii; that Microsoft will take the current Xbox architecture and add features to it while keeping the processing power roughly the same.

But it does seem clear now that the next-gen game war will be fought over features, not raw power.<<

blog.wired.com/.../xbox-head-dont.html

If MSFT wants to get out of the digital music biz, they will be forced to sell Zune to someone--and if they do, then they can kiss the Xbox good-bye, too.  No one will trust MSFT in any hardware ventures.  Ballmer's comments seem diffident and don't inspire confidence in his leadership at MSFT.  He's already being hammered by the Street for this article--and rightfully so.  CEOs  like Ballmer get paid too well to communicate so ineffectively.  

@mikegalos: There is nothing there, from the Zune team or Cesar that definitely says that the Zune (the music player or name). The reports are not clearly denied or contradicted. The Zune is finished. The Zune software may live on in something else, but the Zune music player is finished. They don't have anything to replace it (at least not yet), so they would not be saying otherwise.

The Zune is gone.

That seems outright silly. As far as I've heard the Zune makes money (at least per device, I'm not sure how it goes when one factors in advertising), is a growing platform and is being constantly updated. You don't put this much effort into something and then just dump it.

Disclosure: I'm one of the 17 people who owns a Zune.

I don't know Mr Waters' reliability, but I tend toward the misinterpretation of remarks idea.  (And Mr. B's remarks are often easy to misinterpret.)

I can't read the FT original as they want registration, and I am not going to do that.

I got through without registration...money quote here:

>>Mr Ballmer unveiled two partnerships, with Dell and Verizon Wireless, to increase the distribution of Microsoft’s search engine. While not likely to make a big difference to the company’s market share, the deals carry an important message: Microsoft is fighting back hard against Google. Microsoft’s deal with Dell replaces one that Google reached three years ago, while the Verizon Wireless pact was won in heated competition with the search giant.

In digital music, meanwhile, Mr Ballmer seemed all but ready to throw in the towel on the Zune mobile device, which has failed to gain ground on Apple’s iPod. But he suggested that the focus of competition in digital media was moving onto ground that Microsoft understands well: software.

He said that, with the market for dedicated portable media players in decline, the future lay in more “general purpose” devices – such as Apple’s iPhone and touch.

Asked if Microsoft would counter with a “Zune Phone”, Mr Ballmer said: “You should not anticipate that.” He added that the company would stick to its strategy of developing software to support a range of mobile devices. That suggests that, if there is a future for Zune, it lies in planting the software and online service linked to the player in other devices.<<

Totally OT but worth it:

Tim Sneath has published "The Bumper List of Windows 7 Secrets" on his blog at blogs.msdn.com/.../the-bumper-list-of-windows-7-secrets.aspx

This is a Must Read for anybody playing with (working with) the Windows 7 beta.

Thanks Mike.

Indeed a Must Read...

erm, what exactly happened to plays for sure? I've asked this before and no-one gave an answer.

As far as I can tell, it's still around, although the name has been changed to "Works with Vista", or "certified for Vista" (I forget).

@ Ocean, Paul posted that. If you take a close look at it, the conclusions are mere conjecture on the part of the author.

The only quite of substance we have from Ballmer in the article is “You should not anticipate that.”

The rest is characterization and not quotes from Ballmer.

Article = FUD.

@gorath:

http://www.playsforsure.com

One of the good things that came out of this is that hardware makers have to make devices compatible with 64-bit versions of Windows as part of the certification.  They also have to have properly-tested WHQL-signed drivers.  That means companies like Creative can't just release a good piece of hardware without anything on the software end to back it up.

I would have to say that it's more than a far stretch to infer that Ballmer said that MS will kill the Zune. I really don't think that you can infer it at all. In fact, his words suggest to expand the Zune platform to mobile devices. I see the Zune being sold everywhere, and Zune accessories sold at numerous on line sites. Of course it will have a hard time gaining market share against the iPod, just like the reverse of the OSes, due to existing volume. Sales, profit and sustainability counts for a lot, and it seems to be selling. I own the iPhone, but WinMo is the dominating presence at any IT meeting and most of my meetings with other physician departments. Expanding the Zune platform to WinMo is just another step, just like the iPhone did for the iPod, and the iPod still exists. I am willing to bet any one that the Zune won't be discontinued.

I agree with Shark.  I think people are reading way too much in to this, but only time will tell.  Ballmer's statements were vague at best, and to try and take away any significance is just jumping the gun.

@gorath - You are correct about Plays for Sure. Something that not a lot of people know, is that Zune Pass music will work on a PSF device. I remember reading it somewhere and trying it before we had all 3

Zunes in our house. It is not necessarily supported by Microsoft, but it works.

--tayme

So, just to be clear, nothing has actually happened to "PlaysForSure" at all. But people are somehow claiming that they dumped on their partners for changing the name?

Seems to me like "certified for windows vista" is a more easily understood and recognisable tag for the common user.

Exactly! Here ya go...www.microsoft.com/.../playsforsure

--tayme

Maybe they are going to get the Mac BU group to port the Zune software to OS X:)

I think this was all silly even when Ocean posted it on every article of Paul's a few days ago.  Maybe the next time Ballmer brings up Apple or Google, the mainstream press can talk about Microsoft exiting the search and OS markets.

"Ballmer says competing with Apple and Google is not easy. Does that mean Microsoft plans to exit the OS business?"

@Ocean - "(and I'll note that Thurrot is now posting as blog entries my comments I've made...)"

Another reason for you to get your own blog. That way you get all of the credit that you so rightfully deserve...without having to fish for it!

--tayme

The Zune will live on! It's Songtastic!!!

As my kids say, 'told ya so, told ya so!'

You can put the "glow in the dark towel" song on your Zune!

It's SYNERGY!

uk.youtube.com/watch

This has to be a joke, right?

Well, either it's a joke, or it's so incredibly lame that it's funny again.

Either way, i had to grin al lot while watching...

They were getting a good laugh on that one last night on Attack of the Show. I am guessing that some people saw it and said, "Wow, that is so lame that I have to check it out." and others said "Wow, that is so funny that I have to check it out." Either way, it is getting checked out.

--tayme

The Songsmith video is appallingly, excruciatingly awful by any measure.  I'm skeptical of any explanation that reasons that they made it appallingly, excruciatingly awful on purpose.

Sometimes I wonder what those guys are thinking.  Honestly I do.

Well I guess the reason they work in the research departments is because they don;t think like anyone else!

I have to say though, I thought it was very funny, i agree with someone else wlse, who mentioned it's like a SNL skit.

Zune is nice, but who cares.  The Windows Mobile talk that interview is more interesting.  I find it very interesting how Microsoft is more and more realizing that Apple's business model is the better one for new devices.  Xbox, Zune and now.... Windows Mobile!

bits.blogs.nytimes.com/.../microsoft-expect-fewer-phones-with-windows

Looks like the whole farce of "choice" as a product value that consumers care about is being chucked in favor of hardware/software integration and quality.  Microsoft will now be pulling back the amount of phones that run WinMo.  

This is an amazing turn of events.  It's hard not to recall Ballmer arrogantly laughing and blathering about how the iPhone was "the most expensive phone in the world" and had no chance of capturing major share.  I seem to recall him implying that WinMo would/did have 70 or 80% share at that time.  Talk about bad forecasting!

Now he's having to realize that Apple has blown past them and is on the way towards utter marginalization of WinMo, with Google sucking the $$ out of the remaining licensing market by giving away the Android OS for free.

So great, role in Zune's very nice media play UI.  As Ballmer said, that market is already lost and the converged device market is on it's way to utter dominance by Apple as well.  Given that rolling in Zune at best only levels the media playback features, I don't think it will help.

On a pro-MS side note, AT&T's MS-powered U-verse cable box is has the best UI of any digital TV service by a mile.

A pure MS Zune Phone is surely not the sort of thing MS would want to bring out. It would be too heavily compared to the iPhone. However, a Zune like UI on normal Windows Mobile phones is less attention grabbing and less like to be criticised.

That add had to be done on purpose.  Little things like "Rated S for Songtastic" when it starts, to the colors over all and the stickers on her notebook.  The glow in the dark towel and stuff like that would lead me to think they made it that way to be funny.

All I can say is 'W00t'.

You scared me for a second there. It was sounding like the hardware was going to be abandoned.

"Little things like "Rated S for Songtastic" when it starts, to the colors over all and the stickers on her notebook."

Which, incidentally, is a MacBook. That may be the only good part of the whole thing.

It isn't funny. It's just sad.

There is nothing there that says, we will not be killing the Zune. "extend"? Sure, that means taking what they have (mostly the software) and using it in other products. They would not say it is dead now, especially with nothing to replace it. The Zune is on its last days.

"Little things like "Rated S for Songtastic" when it starts, to the colors over all and the stickers on her notebook."

"Which, incidentally, is a MacBook."

....running (get ready for it....) Windows.

In case anybody was stupid enough to trust robertsjoe's interpretation rather than actually reading Paul's update on the link, here's a relevant part:

==========================

Yes, the company has plans to expand the Zune platform from the PC, Web, and Zune devices to other portable devices, including smart phones, and to the Xbox 360. But it is not exiting the Zune hardware business, contrary to rumors.

"We are going to be in the hardware business going forward," Microsoft Zune marketing director Adam Sohn said.

Or, as Paul summarized his conversation:

Microsoft's plan is to expand the Zune platform to non-Zune devices in the future. But it still plans to continue making and selling Zune-branded media players as well.