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Thursday, September 21, 2006

September 21 - Zune Info

Gizmodo are reporting that Microsoft has just held a meeting to determine the initial selling price of the Zune. Originally it was going to be around $290, but with Apple's latest launch, the mole reported that originally Microsoft was going to undercut the 30GB iPod by $10 until Apple dropped the price. This might change however to a tiny $230. Microsoft is selling the device at a loss - similar to the Xbox 360 campaign in which MS sold games to make profit. This time MS is underpricing to gain as much market share as they can before the next iPod revamp and gain back money in the Zune Marketplace which will have been lost with the price of the MP3 itself. This however might not work, as new figures show that only 40% of iPod owners have ever downloaded songs from iTunes. They're still making a packet though! Nice tactics Microsoft, but do you think that Stevie is just going to let you waltz right onto the stage and steal his market? I don't think so. Be ready, the battle hasn't even begun and tensions are high.

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  Digg | Permalink | Posted by Davidat 5:32 pm. 0 comments


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