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Microsoft sets price for Zune

28 September 2006 15:48 by Ben "Lethal_B" Reid | 52 comments

Microsoft sets price for Zune Microsoft Corp. on Thursday revealed that its upcoming Zune digital music player will retail at the same price as Apple's market-dominating iPod; even though its need to compete with the iPod pricewise may see the world's largest software maker lose money this holiday season.

"We had to look at what was in the market and offer a competitive price," said Scott Erickson, Microsoft's senior director of product marketing for Zune. "We're not going to be profitable this holiday but the Zune project is a multiyear strategy."

Once on sale on November 14, Microsoft's 30gb Zune will cost $249.99, only 99 cents more than the 30gb iPod. Also, songs on the Zune Marketplace, Microsoft's online digital music store, will cost 99 cents - the same price as Apple's iTunes Store, which currently leads the market for 'legal' online digital music downloads.

The Zune, manufactured by Japanese electronics maker Toshiba, faces a tough challenge against an iPod brand which has been around for five years and has sold millions of units worldwide on its way to the summit of the mp3 player market. But it will pack a few feature advantages over its Apple-branded rival, such as wireless connectivity, an integrated FM radio, as well as a large three-inch screen.

Microsoft also said that a subscription pass for its music service will be charged at $14.99 a month, allowing users to listen to any of the 2 million-plus tracks it pledges will be available on the Zune Marketplace at launch. However, once the pass expires, consumers will no longer be able to access the songs.

If one wants to actually own a song, then the Zune Marketplace will sell tracks for 79 Microsoft points. A user can buy 80 Microsoft points for $1 and and points will also be redeemable at its online video game store, Xbox Live Marketplace.

Source:
Reuters Canada


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    Discuss this article!  There are more user comments available, read them here
    ZippyDSM (AfterDawn Addict) 30 September 2006 11:45 Send private message to this user   
    adrian089
    how long before creative makes a vid/media player,even they see a large niche market for non DRM players.
    rickster9 (Junior Member) 30 September 2006 12:46 Send private message to this user   
    Mcft's deal isn't any different than Apples / Napsters/ or any of the other online services. Like it or not folks, it seems that some form of encryption for music purchases online is here. Perhaps the new Vivaldi/Univeral site when up and running in Nov will change it, but I'm not counting on a company that sells music to be in a hurry to change the rules. With the mcft deal you have a choice...you can rent music for $15/month or buy tracks at $1 / track...but you do have a choice; it's not one or the other.

    As for the player, it's a tough market out there. Sure I have a few Ipods, but I can say that their colour screens are terrible compared to the latest competition - didn't really matter when they were just music players, but with video, the apples just suck - even the new 5.5 generation (they tried to tweak the settings but the hardware is the same).

    Will mcft succeed? It depends...I for one, won't ever buy another Ipod...the battery issue has never been solved and I've been forced to buy a new ipod every 1 1/2 or so (the cost of replacement or apple care is just too expensive ...you can buy a new one for just a few extra buxx). And, you are pretty much forced into using ITunes...the latest 7 version being so buggy that people are losing their legit music purchases - so you are forced to go to products like Anapod, Xplay and the like.

    Will I buy Zune or another mcft offering? Guess it depends on how they stack up against the other players out there when the time comes.

    PS: The holiday season won't be profitable my ass....they aren't discounting Zune, and the online store at say $1 / track is something apple makes $$ on. So if they are in it for the long term (and not looking to recover their development costs in one month lol), it will work...just imagine the marketing opportunity...get a free Zune with every purchase of Vista Ultimate.
    wolf123 (Member) 30 September 2006 13:25 Send private message to this user   
    Does anyone know how tyhey copy protect the music
    ZippyDSM (AfterDawn Addict) 30 September 2006 13:26 Send private message to this user   
    wolf123
    Some pitaful DRM that will be "FIXED" in acuple months after its release.....
    voyager (Junior Member) 30 September 2006 15:19 Send private message to this user   
    Well i think that withtunebite,only $19.90,problem resolved.
    I really like the design of Zune and i want more storage my ipod is almost full.
    punx777 (Senior Member) 30 September 2006 19:55 Send private message to this user   
    IT PLAYS UNPROTECTED WMA AND MP3 quit acting like it doesnt

    Quote:
    dose'nt creative make DRMless players?
    what on earth doest that mean? all of creatives players are DRM Wma compatible. THIS IS A GOOD THING, it gives everybody the option of playing music bought LEAGALLY from online stores, or music to rent online stores. such as yahoo, real, [urge].... JUST LIKE THE ZUNE
    Quote:
    who would get this?
    me
    Quote:
    adrian089
    how long before creative makes a vid/media player,even they see a large niche market for non DRM players
    they already have several !

    http://creative.com

    Zen vision M, Zen vision W (wide screen, very slick) and the zen Neon 2 ( i think there may actually be more)

    Quote:
    Does anyone know how tyhey copy protect the music
    as far as anybody knows, it is the same DRM used in yahoo music unlimited and real, which is simply a DrM'd WMA, which is easily fixed by several proggys, including TUNEBITE





    ZippyDSM (AfterDawn Addict) 30 September 2006 19:58 Send private message to this user   
    punx777

    LOL
    we got pawned ><

    So this play's DRM and non DRM mp3s?
    emachine (Senior Member) 30 September 2006 20:14 Send private message to this user   
    Yeah dude idk about that 15 bucks a month and you can't even use it after u bought it. Thats some gayness for me 2 buy this instead of ipod it wouldn't need 2 be 1. cheaper 2. cheaper music dls.
    bullet159 (Junior Member) 1 October 2006 3:01 Send private message to this user   
    I hate apple so the zune should turn out to be wonderful
    desosav (Newbie) 1 October 2006 5:13 Send private message to this user   
    i agree with punx777....
    come on guys it's like an ipod, but also has some extras and some of them have their limitations..
    It does nothing less than an ipod...

    the reason why so many people are against zune, is because it's a MS product... grow up dudes
    voyager (Junior Member) 1 October 2006 8:45 Send private message to this user   
    Not me desovac,i like bcuz is a Microsoft product and i know is completely XB360 compatible only that i have my doubts.
    look at this:
    Hot Zune Specs
    contributed by Zunetastic
    in Zune Forums
    Rumored Specs & Features

    ● might have a 400MHz DSP processor
    ● might have Xbox Live Anywhere integration.
    ● Microsoft will try to buy your way out of iTunes
    ● might be like a..."A Microsoft portable gaming system"
    ● run a program called "Windows Mobile" <<See Windows Mobile below
    ● has the ability to download movies
    ● be able to Wireless connect to the Xbox for exporting music.
    ● have reduced battery life (6 hours max, and a little less than a hour when WiFi is turned on)
    ● User-Customizable Wallpaper skins
    ● probably feature a accessory such as a mini keyboard
    ● be used Vertically, except for widescreen movies.
    ● allows you to stream music to up to 4 other Zune devices.
    ● MIGHT (slim chance) have XM or Sirius satellite services built in.
    ● might have VoIP capabilities<<<See "VoIP" below for definition
    ● might be available in 2 additional colors at launch
    ● might feature anti-shock hard drives and software << See below for def.
    ● release date might be as early as October
    ● Microsoft to ship 3,000,000 units in 2006
    ● Future Zune products may compete with Shuffle, Gameboy, PSP and tablet PC’s
    ● Li-Ion battery
    ● Preloaded audio and video content
    ● Toshiba will manufacture first gen Zune hardware
    ● Zune will be launched in '06, most likely Nov. 14
    ● WiFi (802.11 b/g) connectivity
    ● 30 Giga-Byte Hard Drive
    ● available in 3 different colors, black, brown (chocolate), and white
    ● magnetic headphones.
    ● LCD high resolution screen, the screen is 3.75 inches diagonal
    ● built-in FM radio tuner
    ● TV output connectivity
    ● dedicated song download site
    ● DJ Mode (broadcast what you are listening to)
    ● wheel is NOT a wheel it is simply 4 button (up, down, left right)
    ● Zune brand will eventually include multiple entertainment devices

    Definitions

    VoIP: Also know as Voice over Internet Protocol is the routing of voice conversations over the Internet or through any other IP-based network in such case of WiFi.

    Windows Mobile: Windows Mobile is a compact operating system combined with a suite of basic applications for mobile devices based on the Microsoft Win32 API. Devices which run Windows Mobile include Pocket PCs, Smartphones, and Portable Media Centers. It is designed to be somewhat similar to desktop versions of Windows.

    Anti-Shock: A common software and integrated into the hard drive to help prevent the crash of your hard drive. By detecting sudden movements (similar to dropping the Zune) the software will automatically kick in and help “cushion” the fall by placing the hard drive into a low battery use state, so if it is to have bad effects they wont be as bad cause its as if it's almost off.
    Go to this link there are some videos and scrrenshots in the factory building Zune.
    http://www.zunescene.com/




    ZippyDSM (AfterDawn Addict) 1 October 2006 8:51 Send private message to this user   
    I thought MS was going to bend of for the RIAA like they did for the movie industry for vista,so long story short its just a true Ipod clone.

    voyager
    that is if the 360 is working :P

    the 360 and PS3 have left me cold,altho the 360 at least is loking up right now the new 65n new revisions will be out soonish :3
    voyager (Junior Member) 1 October 2006 8:59 Send private message to this user   
    sure
    did you check the Zune teaser
    http://www.zunescene.com/ ..(new Zune teaser)
    what is the meaning of those birds burning in this new Zune teaser video?


    "360 at least is loking up right now the new 65n new revisions will be out soonish"
    what is this 65n?
    ZippyDSM (AfterDawn Addict) 1 October 2006 9:02 Send private message to this user   
    voyager
    there goign with the 65N CPU and a slight mobo redesign its the first revision almost a mini overhaul :3

    and the 360 needs one badly this has always been number 3 to me bad hardware 1 is BWC and 2 is games ,and to think they could kil 2 birds with ne stone doing full bwc....oh well its to late I already got a Xbox.
    punx777 (Senior Member) 1 October 2006 13:38 Send private message to this user   
    Quote:
    did you check the Zune teaser
    http://www.zunescene.com/ ..(new Zune teaser)
    what is the meaning of those birds burning in this new Zune teaser video?
    i love this video! its so much cooler then shadows dancing haha
    emachine (Senior Member) 1 October 2006 17:45 Send private message to this user   
    Future Zune products may compete with Shuffle, Gameboy, PSP and tablet PC’s

    I don't thinks so......
    punx777 (Senior Member) 1 October 2006 21:22 Send private message to this user   
    the oragami is on its way, which i believe is just a umpc, and there is talk of a psp rival/portable xbox i belive.
    mystic (Member) 2 October 2006 6:14 Send private message to this user   
    everyone should slow down and look around for other manufactures that offer music players or pmp's so your choices go up korea has been flooding the market with some of the newest toys on their pmp's like G.P.S. ans fm radio that records the songs to internal hdd's as mp3's along with other non-dmr advantages... my I-station from digital cube rocks and it ran me $200.00 usd for the unit along with extra battery and it plays DivX avi's mp3's games and stores photos comes with a dictionary and acts like a fire wire drive when plugged it to an apple on the usb cable its way kewler then an Ipod at half the cost... and its 30bg hdd holds 35 movies or 7000 songs see its all about how much do you need to do what.. how about someone builds one that that will play all nedia not just one kind like Itunes howabout one that plays linux apple and microsoft files all one one then throw a cam on it and you have the world at your finger tips... because it'll be your namebrand in hand not theirs.....
    paullycee (Inactive) 2 October 2006 19:11 Send private message to this user   
    ouch u deleted all my loverly spam :(

    This message has been edited since posting. Last time this message was edited on 24 November 2006 11:58

    punx777 (Senior Member) 2 October 2006 19:44 Send private message to this user   
    get the hell out of here, this is not a marketplace and nobody wants to hear it. TAKE IT TO EBAY
    voyager (Junior Member) 3 October 2006 0:35 Send private message to this user   
    .....??? Why this marketplace here what's the deal with Zune?
    borhan9 (AfterDawn Addict) 3 October 2006 3:07 Send private message to this user   
    Why is this guy spaming everywhere.

    Can a mod please deal with this guys stupidity.
    voyager (Junior Member) 24 November 2006 2:02 Send private message to this user   
    msitarski (Junior Member) 24 November 2006 11:33 Send private message to this user   
    Hopefuly prices drop over time.
    CJMcPhee (Newbie) 3 July 2009 11:45 Send private message to this user   
    What are the new product and product reviews and quotes does Microsoft uses? If I want to do my games now I start it with a bang, from my favorite astrogaming.com were I bought my headset and audio appliances.

    This message has been edited since posting. Last time this message was edited on 3 July 2009 11:46

    CJMcPhee (Newbie) 17 July 2009 16:37 Send private message to this user   
    That sure is something,. But am happy with my gadgets right now, I bought them at astrogaming.com.Their stuffs are great for gamers and professional gamers alike.

    Christopher John
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