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July 21, 2006 5:37 PM

Can Microsoft Avoid Origami Overhype With Zune?



Microsoft is now officially confirming what Microsoft watchers have been reporting for a couple of months: Microsoft is readying an iPod competitor (or two ... or more). The final name, not just the code name, is going to be Zune. Microsoft is working on not only the Zune portable-player software, but also the players themselves, officials said. The biggest challenge for Microsoft, at least in the short term, will be to make sure the Zune reality measures up to the hype, so the company doesn't repeat its overpromising/underdelivering strategy, as it did with the "Origami" ultra-mobile PCs.

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Comments (2)

tak Juju :

test

Omer Qureshi :

Not too long ago IBM, then Novell, then Netscape and then Sony laughed at Microsoft’s entrance into their turfs, whether it was with PC DOS, Novel Netware, Netscape Navigator or Sony’s dominant game console the mighty Play Station, Microsoft continues to make the big and small boys on the IT street shiver…. The fact is that the software giant has ton loads of money and continues to add about a billion dollar in revenue per month, and unlike US government the smart people at Microsoft know how to put their hard earn surplus to work.The point I am trying to make is that Microsoft is going to be the first “real” player to challenge the authority of Apple’s iPod, and if history repeats itself, Steve Job and Apple might find themselves collecting dust and Microsoft might end up making the big bucks with Zune, just the way Bill Gates did some 20 years ago with PC taking over the personal computer market established by Macs and then dominating the Personal Computing world…Bottom-line: Zune might not capture and destroy 100% market share of iPod, but what if it erodes the share to let say 30-40%, wouldn’t that be a big success to Microsoft and a big blow to Apple, which rely solely on the funds from iPod sales? And what if in due process it drives down the price of download music from almost a buck a song to 10 songs for a buck?If anything, we as consumers should keep a close eye on this race and go easy on the iTunes purchase of Apples’s proprietary media :)Omer Qureshi

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