GameStop Dumps The Zune

[Jason Dunn]

http://www.thestreet.com/s/gamestop...=FREE&cm_ite=NA

"Video-game retailer GameStop has decided to stop selling Microsoft's Zune players at its stores due to what it sees as insufficient demand from customers. The move is unlikely to affect GameStop, whose sales come almost completely from video games but it puts up another hurdle in Microsoft's attempt to grow Zune sales. "We have decided to exit the Zune category because it just did not have the appeal we had anticipated," said a GameStop spokesperson. "It (also) did not fit with our product mix." GameStop made the decision about a month ago. GameStop said it will sell Zune players online until it clears out its inventory."

I don't know how many Zunes GameStop was moving, but I suspect it wasn't many if they're making this move. It's unfortunate, because the v2 Zune is really a strong contender and it plays nicely with the rest of the Microsoft ecosystem (which includes the Xbox 360 that GameStop does sell). Losing a retail chain will hurt Microsoft's ability to sell the Zune - the only question is how much, and will other retailers follow GameStop's lead?

[Jason Dunn]

http://www.thestreet.com/s/gamestop...=FREE&cm_ite=NA

"Video-game retailer GameStop has decided to stop selling Microsoft's Zune players at its stores due to what it sees as insufficient demand from customers. The move is unlikely to affect GameStop, whose sales come almost completely from video games but it puts up another hurdle in Microsoft's attempt to grow Zune sales. "We have decided to exit the Zune category because it just did not have the appeal we had anticipated," said a GameStop spokesperson. "It (also) did not fit with our product mix." GameStop made the decision about a month ago. GameStop said it will sell Zune players online until it clears out its inventory."

I don't know how many Zunes GameStop was moving, but I suspect it wasn't many if they're making this move. It's unfortunate, because the v2 Zune is really a strong contender and it plays nicely with the rest of the Microsoft ecosystem (which includes the Xbox 360 that GameStop does sell). Losing a retail chain will hurt Microsoft's ability to sell the Zune - the only question is how much, and will other retailers follow GameStop's lead?

[txa1265]

I very much doubt it - MP3 players are not their core business ... they are focusing on being a pawnshop at this point (that is, focusing on the used game business - giving you <50% for a game and selling it for $5 off retail).

[David Tucker]

yeah this doesn't mean anything to me. I personally knew they sold them only because I noticed them there and am a Zune owner. But I guarantee it wasn't on most peoples' radars when thinking about buying an MP3 player and it was too expensive to be an impulse buy.

[byteme]

Better hope Canadian consumers respond

[rockbox1590]

I doubt Microsoft is overly concerned about this. Yes, it is the loss of a retail outlet, but its the loss of one that treats its product as an after thought. No 2nd gen units, nothing on display (often hidden in storage cabinets or in the backroom), and employees who could care less about selling a $200 product. If this were Walmart annoucing they were dropping the Zune, I'd be very worried. As its Gamestop, its no big loss.

[inteller]

considering that they had no ipods in the store to compete with, I would rate this as a huge blow. The Zune had the store to itself.

In the gamestop I went to, the zune was crammed in the back with the 360 display. something tells me microsoft isn't handing out enough payola to get better product positioning.