Microsoft Cuts Zune Prices. It Won't Help

Dan Frommer | November 18, 2008 4:20 PM

zunes.jpgMicrosoft is cutting pricing on its Zune MP3 player, which hasn't done much to disrupt Apple's (AAPL) market-leading iPod. The new price tags, according to MobileDevicesToday:

  • 16 GB: Zune, $179; iPod $199
  • 8 GB: Zune, $139; iPod $149
  • 4 GB: Zune, $99; no iPod

We realize the economy is tough. But we still think most people will spend the extra $10-$20 to get one of Apple's sexy new iPod nanos. (Or, for $199, an iPhone.)

The 4 GB Zune at $99 is a good price, but we think most people will want at least 8 GB of storage these days.

See Also:
Apple Mac Sales On Track, iPod Looking Better Than Expected
Microsoft Trusts Zune Ads To 'I'm A PC' Agency
Apple, Studios Giddy Over iPhone Gaming

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6 Comments

Robleh (URL) said:
When are they going to realise this is doomed? It is the Live Search of music players.
Gordon said:
as a long suffering msft shareholder, i say give it up.
Agreed.
ben s said:
walk into an apple store, they are always full and people are giddy with excitement over their purchase of an iPod (or beyond)... my kids drool and beg for one

walking past the zune's, behind glass, at best buy, doesn't seem to evoke the same reaction.


Chris said:
The iPod touch is the only ipod that matters.

If someone sees it and uses it they will understand.

$229. I predict a big holiday sale on them.

Apple will make money on apps, music, and video. They can certainly afford to drop it to $179 to increase the volume.

-Chris
Lost Punisher said:
This season, I will being buying from a developers standpoint. Though the touch has great functionality and is pretty epic in just about all regards the market is over saturated, I have to pay to develop, and the price is insane. Ever since the second generation Zune I wanted one. It's just so much easier to navigate with than the super touchy wheel on the classic iPod. Anyway I have a 30gb iPod right now and it's full. And now that the Zune store has that whole 10 DRM-FREE song downloads a month along with unlimited DRM songs for as long as I hold my subscription, I'm thinking Zune is the way to go. 120gb for the same price as a 8gb iPod Touch... Though I do want a touch screen... Guh I hate this. Though if the iPod Touch had the freaking mic and speaker like the iPhone then I'd buy it... A Skype app would own all. Apple is just to snobby for it's own good.

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