November 21, 2006

After all the hype, backlash and criticism, Microsoft's Zune is available for sale. Coolfer got project manager Scott Erickson on the phone to ask a few questions about some controversial aspects of the new product.

The Zune Marketplace asks consumers to pay for downloads with Microsoft Points, which are unfamiliar and unnatural for those of us who are not gamers. XBox players will be familiar with the Points system and the procedures involved (buy Points then redeem at the store). Digital music consumers are familiar with paying with dollars and cents. Songs cost 79 points apiece. Album prices vary according to the wholesale prices charged by the label, which means there's a range of album prices at the Zune marketplace.

So why use the points system? It's good for people who don't use a credit card online, explained Erickson, who thinks it "will become second nature" once Zune users start using Points. Time will tell, but I think the Points system is too drastic a change for music purchases. In theory it's very simple. In practice it is very unlike other the payments systems music consumers have experienced.

Zune allows songs shared via WiFi to be played three times or held for three days (3x3) before becoming inert. The 3x3 system is another question mark on the Zune. Erickson said the choice to do 3x3 was based on research and coversations with lables. The 3x3 is open for change and improvement, Erickson told me. "We'll look at 3x3, be flexible, listen to consumers, listen to labels." (Zune group leader Robbie Bach told Newsweek's Steven Levy that the 3x3 system was "a really good first step," which also implies future improvements are possible.)

The iPod is the king of accessories. Zune has a lot of catching up to do here. Erickson said there about 110 companies interested in making Zune products, and at last count had 100 to 125 products. "We'll get better," Erickson said of Zune accessories.

Reviews of Zune have ranged from good to poor with most holding their four-star awards until WiFi capabilities are improved and the sharing function is improved. Newsweek's Steven Levy had some positive things to say about Zune, which was a surprise since he's such an Apple envangelist. Overall, though, Levy places Zune well behind the iPod, and he points to what the Zune could become, not what it currently is. True. Microsoft has some work to do. In a year, the Zune and the Marketplace should be much improved. Microsoft has a long-term outlook for the Zune. So should we.

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Posted by Glenn at 1:40 PM | | | Zune