The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
The Zune is a Decoy to Defend Xbox Turf

The Zune is a Decoy to Defend Xbox Turf

by , 5:35 PM EST, December 20th, 2006

The Microsoft Zune is merely a decoy and a distraction to the rest of the industry so Microsoft can defend its Xbox turf. That's what Bob Cringely said in an interview with The Motley Fool on Wednesday.

Mr. Cringely continued, "You know, I think Microsoft is not stupid. Microsoft is big and lumbering and brutal, but they are not stupid, and what they know is that they have more resources than anyone, and they are fully capable of doing some little Zuney thing that is relatively meaningless except that every potential competitor has to take it into account.... Microsoft's real strategy in the home has to be built around Xbox, and Xbox is actually doing some smart things..."

Asked if he thought Apple would counter with a game machine, Mr. Cringely astutely observed that Apple is correctly focused on defending their iPod turf.

The industry is slowly starting to understand why Microsoft didn't put a lot of effort into the design of the Zune. We've written about it here at TMO. Apple's passion for great products shows in the iPod. Microsoft's passion for Big Business dealings with products as a vehicle was reaffirmed by Mr. Cringely.

Digg!

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Guest
Subject:

I think people badly underestimate MS and the Zune.

The 1G Zune is far from competitive with the iPod, but as a first start it's not at all a bad product. If they adjust course on some of their stupider decisions (like the deeply crippled WiFi song "sharing"), work on slimming the thing down, release a nano-class model, create as many connections between Zune, 360s, and Vista as possible, and continue to pour millions and millions into the marketing campaign, it could easily become the #2 mp3 player. It won't come close to knocking off the iPod, but it can be a solid #2.

Point is, the Zune is not a diversionary tactic of any kind. It's an attempt at MS to ape the iPod-iTunes-iTS model pioneered by Apple... only 5 years too late. MS has little choice; Play for Sure is a bust, and Apple at the moment is flat-out winning the new standards war taking place in consumer media.

Close Name:Biff Posts: 1479 Joined: 08 Apr 2004
Subject:

I don't see how a crappy portable music player helps the XBox. That makes no sense. But then again I have no idea what the basis for Mr. Cringely's opinion is. I guess that is the kind of detail one doesn't normally mention in a report such as this.

How does Apple threaten the XBox at all? Even when they get into my living room via an iTV, its not like my 360 is going anywhere. Heck no!

Guest, by the time M$ gets an improved Zune model out, Apple will be busy revolutionizing the cell phone industry. Plus there's the whole "iPod ecosystem" thing with tons of available accessories, car integration, airline integration, etc. It's going to be alot longer than you think before M$ can catch up.

Close Name:Guest
Subject:

Well, if you knew anything about the Zune ('s okay, not many people around these parts do) then you'd know it interfaces with the Xbox 360. It's not really super special in that sense (almost any USB device will). It can be considered a 360 accessory, launched (at least in my eyes) strategically around the release of the Wii and PS3.

And yeah, subliminally Microsoft's probably trying to push the 360 into the public eye, though the Zune isn't really doing much of anything in that respect. It's not so much a diversion as an attempt to get it in the spotlight and an attempt to integrate their systems using MS points (giving "Microsoft Money" a whole new meaning). Halo 3 anyone?

Close Name:jbelkin Posts: 20 Joined: 23 Jul 2003
Subject: Occam's Razor - MS is THAT Stupid

I think it's another long line of people thinking - man they were smart once - how can they be so dumb now - they must be doing some double secret negative thing to throw us off the track except the reality is they're like the hotshot in college but in the real world, life is much harsher. Just like the things that make some people a huge success in college but not after, same with a world driven by enterprise and one driven by consumers. Just think of their 'we'll get it right later.' works okay with corporations because no one wants to start training again from scratch but consumers - if you buy a lawnmower that you hate, will you buy the same brand again? Not likely, even if you have to relearn to use a new mower, you'll buy another brand - thar's why MS can't really sell anything to consumers from talking barney's to watches to MSN. Hell, people won't even use MSN search and it's ONE FREE MOUSE click away ... think about that. As for their only "success" if you think spending $400 to sell each unit is a success ... what is an Xbox really? A Pc that has no driver or virus issues and costs about 10% the price of a comparable gaming PC - so really, their only success eats into the base of people buying gaming Pc's ... Ms will do fine for the next 10 years selling an OS for wedding registry kiosk, telemarketers and cash registers but their time is done in leading anything.

Close Name:Guest
Subject: A Decoy?

I always enjoy Mr. Cringley's provocative opinions but I don't always agree. In this case, I think it helps to remember the truism that "nobody's incompetent at everything", reverse it, and apply it to Microsoft. In other words, I think Mr. Cringley is giving M$ more credit than they deserve. I'm willing to believe they're putting a bigger bet on the XBox than the Zune, but still, it's not really plausible that they were aiming at losing from day one when they created the Zune. As they've proven time and time again, they really do like to win and they really are tone-deaf when it comes to cultural issues. I think it can be difficult to believe that such a mighty giant can be so silly and irrelevant in this music, consumer electronics arena, but we should trust our eyes: Microsoft really is silly and irrelevant as far as MP3 players go.

Remember in 1985, Apple had a ten year head start on GUIs. Ten years later, Microsoft had caught up, but only because Apple had done them the favor of standing still for a decade. So it's understandable that M$ believes that with enough persistence it can catch up this time too. I myself don't believe that history will repeat since Steve Jobs has learned his lessons and Apple is not standing still.

Mr. Cringley asserts that "Apple has to respond to the Zune", but he doesn't provide any proof. I don't think Apple does have to respond. In this field, I think Apple sees M$ for what they are, irrelevant and silly and easy to ignore.

But what about Microsoft's Plays For Sure hardware partners? Are these companies going to respond to the Zune? What's the correct response to this betrayal? I myself don't know, but it sure makes M$ look silly, irrelevant and desperate too!

Chris Jones

Close Name:cdb Posts: 12 Joined: 15 Aug 2006
Subject: the new standards war

Quote
Guest wrote:
Apple at the moment is flat-out winning the new standards war taking place in consumer media.


I wonder if they are...it's looking more and more like the DRM attached to media files will slowly disappear as other revenue models are found (that's where the real innovation needs to happen at the moment), and the standard will become whatever non-drm format most people want to use, i.e. MP3. But I can dream, can't I?

Close Name:nealg Posts: 123 Joined: 22 Mar 2006
Subject: Right concept wrongly placed

In my opinion, it is not xbox that MSFT is trying to protect but its role in the battle for the living rooms in people's homes. If Apple wins, media is encoded for quicktime and not windows media and MSFT loses its hold on this market and possibly many others. In my mind, it is that simple and that important to MSFT. The stakes are much bigger than xbox.

Neal

Close Name:Guest
Subject: Media on the XBox

If M$ sells the box the media is viewed with, how upset could they be if it's quicktime?

Close Name:Guest
Subject: Servers too.

Quote
Guest wrote:
If M$ sells the box the media is viewed with, how upset could they be if it's quicktime?


They want their software to be on the box serving the media too and with Quicktime that won't be the case.

Close Name:vasic Posts: 279 Joined: 09 Aug 2005
Subject: Precisely!

MS is a software company. Apple is a hardware company. While Apple doesn't mind if a new revenue stream is generated from all that QuickTime content out there, MS shudders at the thought of losing Windows Media Format market share for content delivery. With the possible exception of keyboards and mice, MS hardware is losing money. X-box or Zune; they cost more to make than they sell at retail. They live or die by the volume of their licenses (Windows, Office, WM, Win Mobile, games...). On the other hand, iPods cost about $80 to make (the full-size video ones). Macs are very similar (if not as drastic) story, with retail around 60% on top of parts price. Apple essentially gives its software away (more-or-less; although they've done quite well with FCP), focusing on manufacturing and selling beautifully designed boxes. Fundamental difference in philosophies will never make MS a competitive hardware product.

Not to mention the bureaucracy that has infected MS at all levels of product development (layered management structure, hazy decision-making process, everyone covering their own a$$...). With or witout Zunes in the market, Apple (with SJ heading it) will continue to innovate, because SJ will keep pushing for innovation. They don't need a challenger in the market in order to be motivated. SJ is doing a fine job already.

Close Name:horvatic Posts: 102 Joined: 27 Jun 2003
Subject: Decoy or an excuse for a total failure which is the Zune

I say it is not a decoy but the Zune is a total failure. It was supposed to compete with the iPod head on and instead it flopped big time. Now the excuses start coming out like this one. It was a decoy, we expected the sales numbers that we got. Yea right, what a bunch of poppy cock. Face it, the Zune was a total failure and did not meet expectations period. Adding an FM radio does nothing for an MP3 player. Adding wireless does nothing either when it is totally locked down and so limited in range and what it can do. The software crashed in typical Microsoft fashion and they had no movies available for sale even though it was supposed to be able to play them.

Close Name:Guest
Subject:

Quote
jbelkin wrote:
I think it's another long line of people thinking - man they were smart once - how can they be so dumb now - they must be doing some double secret negative thing to throw us off the track except the reality is they're like the hotshot in college but in the real world, life is much harsher. Just like the things that make some people a huge success in college but not after, same with a world driven by enterprise and one driven by consumers. Just think of their 'we'll get it right later.' works okay with corporations because no one wants to start training again from scratch but consumers - if you buy a lawnmower that you hate, will you buy the same brand again? Not likely, even if you have to relearn to use a new mower, you'll buy another brand - thar's why MS can't really sell anything to consumers from talking barney's to watches to MSN. Hell, people won't even use MSN search and it's ONE FREE MOUSE click away ... think about that. As for their only "success" if you think spending $400 to sell each unit is a success ... what is an Xbox really? A Pc that has no driver or virus issues and costs about 10% the price of a comparable gaming PC - so really, their only success eats into the base of people buying gaming Pc's ... Ms will do fine for the next 10 years selling an OS for wedding registry kiosk, telemarketers and cash registers but their time is done in leading anything.


If you think that MS is done leading anything, and you think that they are stupid, you must be VERY ignorant.

Close Name:tbone1 -   TMO Staff Posts: 3981 Joined: 13 Jul 2001
Subject: Re: Precisely!

Quote
vasic wrote:
MS is a software company. Apple is a hardware company.


No. MS is a software company. Intel is a hardware company. Apple is a solutions company.

Close Name:Mikuro Posts: 457 Joined: 15 Jun 2002
Subject: Umm....reasoning?

This sounds good (or at least amusing) in theory, but nobody, including Cringely, has said HOW the Zune is supposed to make any material effect as a "diversion".

Close Name:Jonkun227 Posts: 238 Joined: 02 Mar 2004
Subject:

Quote
Biff wrote:
Plus there's the whole "iPod ecosystem" thing with tons of available accessories, car integration, airline integration, etc. It's going to be alot longer than you think before M$ can catch up.

I can't imagine anyone can really appreciate what the Zune is up against without taking this into consideration. It can't be overstated.

For years everything with some semblance of a USB connector had an "MP3 compatible" sticker on it. Those stickers are all but gone. Now the labels read, "Made for iPod". From BigLots or Family Dollar to Nordstrom and Dillards, you can hardly go anywhere without seeing iPod accessories. Even clothing specifically designed around the iPod form factor.

Airlines are scrambling to provide iPod connectivity. They're losing business right and left and they see iPod compatibility as a competitive edge. Suddenly the frustrations of an iPod without a user changeable battery are balanced by companies with specific solutions for that exact problem.

Take it one step further. What if airline iPod connectivity included iPhone connectivity? Or a massively multiplayer midair tournament for some new iPod game? Or any of infinitely many things I can't even think of but someone certainly has, and it requires an iPod to work.


- Jon

Comment on this Article


You cannot edit your comments.   You cannot delete your comments.

Comments are currently closed. Please email the author instead.


Recent Headlines - Updated July 6th

Mon, 4:12 PM
Product News - Babylon Upgrade Adds New Translation Features to Mac Dictionary App
11:17 AM
Ted Landau's User Friendly View - Apple’s LED Cinema Display: A Too Short Story
11:11 AM
Product News - Photo Recovery for Mac Adds Photoshop Support
10:39 AM
Hot Forum Topic - iPhones in Education
8:47 AM
News - Apple Employee Injured in Store Shooting
Fri, 10:29 AM
News - Apple Warns of Learning Interchange Security Breach
7:30 AM
News - Happy Fourth of July!
Thu, 6:07 PM
TMO Scoop - Psystar Moves to Drop Bankruptcy Ahead of Apple Legal Battle
5:37 PM
News - Uncomfirmed Reports Say Apple & Nvidia On The Outs
4:57 PM
News - Microsoft Sick Over Barf Ad
4:09 PM
Product News - KRK Ships R6 Passive Studio Monitor for Recording
3:45 PM
John Martellaro's Blog - Particle Debris (week ending 7/2)  Juiced, Joost and Goosed

The Mac Observer Reader Specials

  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!