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Microsoft speaks out about Zune revenue loss

27 January 2009 15:02 by Andre "DVDBack23" Yoskowitz | 7 comments

Last week we reported that Microsoft Zune revenue had fallen over $100 million USD year-on-year from 2007.

Microsoft has now spoken out about the numbers and says that the huge drop in revenue was "unexpected."

Zune Director of Marketing Adam Sohn, when asked what factors led to the decline, added:

"Some of them are environmental. Everyone knows that the economy is not what it was a year ago, and that is hurting some folks. We are in a position where the category is also shrinking. So I think those are things that affected everybody's sales, including Apple."

Sohn also noted that the software giant did not use aggressive marketing with their third generation Zune devices. Many consumers will argue that there was in fact, no marketing to speak of.

The director did add that new Zune products were coming soon, and that development was "fast and furious."

"Every time anything comes up, there is a set of people who pull a Chicken Little and say, 'The sky is falling. Zune is dead,'" Sohn noted. "The fact is we are on track to deliver the next generation of Zune innovation in software and hardware."

Apple, despite a reported 15 percent decline sales, continues to dominate the MP3 player market with a hefty 70 percent market share. Most reports show Microsoft as having 3-5 percent market share.

Permalink to this article | Topic: MP3 & Digital Audio

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Discuss this article!
DSWarrior (Junior Member) 27 January 2009 16:26
Zunes would be cooler if they didn't have a "Microsoft" brand behind/on top/or whatever on them...Microsoft sucks...period... [ + quote]
nintenut (Senior Member) 27 January 2009 20:11
*Originally posted by DSWarrior:* Zunes would be cooler if they didn't have a "Microsoft" brand behind/on top/or whatever on them...Microsoft sucks...period... Cue shtstorm* I love fanboys, because they get banned. =D [ + quote]
EnigmaCM (Junior Member) 28 January 2009 2:19
*Quote:* *Originally posted by DSWarrior:* Zunes would be cooler if they didn't have a "Microsoft" brand behind/on top/or whatever on them...Microsoft sucks...period... Cue shtstorm* I love fanboys, because they get banned. =D So do I, specially when it comes to Apple fanboys who want to "Applefy" everyone. When will they learn a product or a company is nothing to be worshiped about, at least not in this way [ + quote]
p303 (Newbie) 28 January 2009 14:30
i find it funny that more 360 owners dont own a zune... Everyone dogs microsoft weather it be "windows sucks" or "the Zune sucks" or whatever. they Still make the 360 and i think that kinda sucks, i like windows and i love my zune... not a fan of my 360 (just to many problems with RROD and things). I guess no matter what you do in the market you just can't win! Zune is good PS3 is the shit i'm out! [ + quote]
Morreale (Member) 28 January 2009 14:51
Hmm... Maybe if they had some ads I'd know that the Zune is better then the iPod Classic... Cheaper too. I'll be looking for one of them next christmas. Even now for $250 CAD you get the 120GB Zune player and a speaker dock with video out or w/e from Futureshop, which is a much better deal then just a 120GB Classic. I have a 5.5G Video right now which is nice but the battery is going. I can replace it for like $5.75 off of DX but I also need a bigger HDD so... [ + quote]
atomicxl (Junior Member) 29 January 2009 23:01
My Zune recently broke (dropped it while the HDD was spinning) but I loved that thing. I bought a Zen to replace it thinking that it was a smart move since it was flash based, the same size as flash Zunes and like $30 less. Dear god that thing is ultimate crap. I've used iPods but I think the Zune is a really nice bit of kit. MS should promote the Zune card more. Thats a cool feature. My friends and I are always battling over who can get the most plays from out favorite bands. [ + quote]
robertmro (Newbie) 1 February 2009 16:00
Crap is crap. [ + quote]