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Old 03-31-2009, 10:51 PM
David Tucker
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Default Changing Course?


"According to our sources, the company is currently discussing marketing strategies going forward. But the most interesting aspect of this talk is that Redmond is apparently sharing information with key partners for the first time in the platform’s short history.  This would mark a definite change in strategy, and possibly indicates that Microsoft is finally admitting that the Zune platform in its current form is not working, and certainly not sustainable from a profitability aspect."

Its definitely interesting speculation even though I can't really say how much of it is true.  I don't know what Microsoft's performance goals are when it comes to unit sales but I do think I'd have a hard time believing they're ok with the current market.  Microsoft is really more about building ecosystems and the Zune is about as different from their usual business model as it could be.

I do disagree that abandoning "Plays for Sure" seriously hurt its partners.  PFS still exists and many devices use it still.  It seems to me though that Microsoft would stand to make a lot more money off the Zune if they licensed the codec to other companies.  On top of that, they could pull more subscribers into the Zune Pass.  I don't think Microsoft needs to do much with the Zune to be honest. This is a market with a pretty simple goal: play media on the go.  The Zune does that well.  Better than most of the competition actually.

It will be interesting to see where Microsoft goes with it since they really need to have as many people as they can on the platform to make the social aspects of it more fun.

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