misunderestimation

On November 14th, with much fan fair, Microsoft threw itself into the mp3 player market with the launch of their Zune player:

Zune is Microsoft’s music and entertainment platform that provides an end-to-end solution for connected entertainment. The Zune experience includes a 30GB digital media player, the Zune Marketplace music service, and a foundation for an online community that will enable music fans to discover new music. Inspired by the vast and varied community of music fans, Zune focuses on helping emerging artists shape the digital canvas.

Will the Zune be the next big threat to the iPod? Is this another round in the continuous struggle between Steve Jobs and Bill Gates? Are we seeing a shift in the music player marketplace? Businessweek doesn’t think so:

The Zune is not generally seen as a threat to the iPod, which dominates the portable music player market. Shaw Wu, an analyst for American Technology Research, has predicted that Zune’s success may instead come at the expense of other makers of portable music players, such as Sony, Samsung and Creative Technology Ltd.

Ok, it’s not seen as a threat, but how is it selling?

An Amazon.com selling list for electronics on Monday featured seven digital media players, including six iPod models, but did not include Microsoft’s Zune device, the article said. Cyber Monday, the Monday following Black Friday, is usually one of the busiest online shopping days of the year.

It’s still early and there is a lot of iPod bias out there, but check out headlines from various publications

• No Zing for the Zune
• Zune Who?
• How not to be an iPod killer
• Zune Heading For A Nasty Landing
• Zune Reinforces Microsoft’s Dorky Image

The last one is my favorite. It’s the headline from a post on C.W. Nevius.blog and sums it up this way:

Same price, fewer features. But it is available in brown.

That doesn’t sound good. What does Microsoft have to say?

Microsoft Corp. is pleased with initial sales of its Zune music player, even as Eugene Munster, a Piper Jaffray & Cos. analyst, says few retailers are recommending the device as an alternative to Apple’s iPod. ”All signs indicate that we are on track to meet our internal business projections,” said Zune sales director Jason Reindorp.

Apparently, Microsoft is happy just to be in the game. To me, the big test was answered last night by my 15-year-old.

Dad – “Son, what have you heard about the Zune?”

Son – “What’s a Zune?”

Other Blogging:

• Zune swoon
• Zune or iPod?
• iPod v. Zune. iPod Wins in a Landslide. Zune Sells, But Does Not Lead.
• The Best Zune PR Money Could Buy
• Avoid the loony Zune
• 3 Reasons Why Zune Could Beat The Ipod

More misunderestimation