January 13, 2009

Steve Ballmer is only Microsoft's CEO, but he does not apparently speak for the company's Zune team. Contrary to rational interpretation of Ballmer's comments last week, a Microsoft spokesperson now says the company is "deeply committed" to the Zune -- both hardware and software. From Epicenter Listening Post:

"Basically, what happened last week, Steve [Ballmer] said a couple of things about the category," said Adam Sohn, head of Microsoft's Zune marketing division, causing speculation that Microsoft would stop making Zunes. However, he clarified, "we're not getting out of the hardware business at all," adding that Microsoft is "deeply committed" to continuing to its Zune hardware strategy.

Mixed signals tend to portend something deeper and often problematic. This late in the product cycle, Microsoft has a better chance to arrive at its game-changer. But what will it be? One can only guess what will be in store for Zune. While it's a fine and decent product, the Zune is lagging behind its competitors and failing to excite music lovers. The store lacks the depth of content of iTunes. A subscription services for $15 a month is not much enticement for all but niche, unrepresentative consumer. The buggy software rendered all Zunes dead on New Year's Eve. Zune Points may work for gaming but they're a nuisance for music. And the list goes on.

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Posted by Glenn at 3:29 PM | | Zune

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