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Speculation about the future of Zune

By | Published on Wednesday 14 January 2009

Talking of difficult times in the consumer electronics space, there is some speculation about Microsoft’s commitment to its dabblings in music hardware. Some are speculating that the IT giant is considering quietly discontinuing its iPod rival the Zune player, which has never really taken off as a serious rival to Apple’s market leader digital music player.

The speculation seems to be based on comments made by Microsoft CEO Steve Ballmer in an interview with the Financial Times.

According to Digital Music News, the paper says Ballmer “seemed all but ready to throw in the towel on the Zune device”, partly because he feels the future of digital media devices is very much in the mobile phone space – ie it’s the iPhone, a more consumer-focused Blackberry and mobile-come-music players from Nokia and Ericsson that will dominate.

And Ballmer, the FT reckon, isn’t keen about moving into the mobile phone hardware space.

But, it should be noted that Zune’s main marketing chief has responded to the speculation by saying that Microsoft remained “deeply committed” to its music device. He said that too much had been read into comments made by his CEO that the Zune content experience would, in the future, be accessible via platforms other than the player.

Speaking to Wired, marketing man Adam Sohn said: “Steve said that we think the Zune device is not the only place you will access the Zune experience. That is spot on with our strategy. But a lot of people jumped to an ‘either/or’ when in fact it’s a ‘both/and’ situation”.

No word from either Ballmer or Sohn on whether Microsoft ever plan to release the Zune player outside the US market.



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