Microsoft to slash the Zune’s price to $199

As the rumor mill grinds away without respite about new iPods supposedly coming later today, a Microsoft blogger has revealed that the price of the Zune is about to go down by $50. The Microsoft portable media player currently has an official price tag of $249.99, but Richard Menendez—a member of the Zune team—says that will drop to $199 today.

Rather than explicitly mention Apple’s forthcoming announcement as the motivation behind the price cut, Menendez briefly states, "It’s part of the normal product lifecycle, something we’ve had on the books for months." According to Menendez, customer satisfaction with the 30GB Zune is around 94%, and Microsoft believes "even more consumers will now want to discover the Zune experience at the new lower price."

Of course, with new iPods expected to bring goodies like touch screens, wide-screen displays, and Wi-Fi support, it’s no wonder Microsoft is making the Zune more affordable. Second-generation Zunes do seem to be in the works, but Microsoft has yet to officially announce them. (Thanks to Engadget for the link.)

Comments closed
    • PetMiceRnice
    • 12 years ago

    I think these price cuts have a lot to do with the fact that we will see new products very Zune.

    • ssidbroadcast
    • 12 years ago

    The Zune on paper sounded good until you read between the lines. Proprietary wi-fi? DRM-trading only? 3 plays/3days?

    What a DRM-propagating P O S.

    • clone
    • 12 years ago

    it’s not going to change anything, MS should have undercut Apple long ago and by a wide enough margin to get noticed…… no one will care, it’s doubtful anyone will even take interest in the new price point as it’s really isn’t a jaw dropping shift.

    if MS drops it’s Zune to $100.00 – $125.00 even at a loss at least someone might actually notice it which could shift momentum, doubtful as Apple has simply moved on to DRM free offerings which will also be killing Zune on top of the rest of it’s short comings.

    the product seems adequate but with no momentum in a market that thrives off perception and style MS ignored value killing it.

    • Krogoth
    • 12 years ago

    Seriously, why was MS even bothering to compete against the sheer market momentum and brand name recognition of Apple’s iPods/iTunes? In addition, there are already tons of smaller compeitiors who had eaten up whatever niches were left over.

      • Gandhi
      • 12 years ago

      Because there is potentially a lot of money to be made if MS wins the battle. Not to mention that iTunes is quickly becoming the gateway to entertainment content in consumer homes – running Apple software – and MS would dearly love to have Windows software running instead.

        • indeego
        • 12 years ago

        This is more about a fear of losing share than a desire to gain share. Apple, despite Microsoft’s dominance, is a serious threat to MS’s model of multi-level platform dominanceg{<.<}g

          • Krogoth
          • 12 years ago

          It is already far too late.

          MS missed their chance to make a impact by like a couple of years. They should focus on placing pressure on Apple’s AppleTV. MS has a fairly decent chance there because of Windows Media Center and Xbox 360.

            • willyolio
            • 12 years ago

            Seriously, why was Apple even bothering to compete against the sheer market momentum and brand name recognition of Microsoft’s Windows? they should just concentrate on making iPods.

            • ssidbroadcast
            • 12 years ago

            ++points to willyo for the “Touche!” factor.

        • Krogoth
        • 12 years ago

        The chance of that happening is very unlikey and will require Apple to make several bunders in a row, while MS makes huge hits.

        MS should just focus on areas where they have a chance to do something (Xbox 360 versus PS3).

          • clone
          • 12 years ago

          Sony ruled the market until Xbox arrived and with Halo overnight created the momentum and the market for the Xbox.

          the problem is MS hasn’t got anything compelling for Zune.

          I mentioned it earlier MS is too late and nothing short of a massive price drop and their turning the Zune into a Blackjack like the Blackjack but at a more affordable price point with less expensive push email will pull zune out of the “totally ignored bin”.

          the Ipod market is totally obsolete at this point and it will be convergence that will pave the way.

          phone, music, web surfing and email, limited gaming, video playback and limited word processing and fax are all feasible on one device…… whoever gets it will win….. my guess Apple will jump ahead of Rim and MS will continue to miss the boat.

    • flybywire
    • 12 years ago

    Retailers have been selling the Zune for about $200 for quite some time now. Probably due to the fact their stocks of Zunes aren’t moving as fast as they’d like.

    • Taddeusz
    • 12 years ago

    Read as, “it’s not selling very well so we’re going to try to sell more units by undercutting Apple.” 😛

      • Gandhi
      • 12 years ago

      Incredibly poor timing if that is their strategy

    • sigher
    • 12 years ago

    Nice for MS fans that lost theirs earlier this week I guess 🙂

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