iPod Why Microsoft Fails...

[tech4all]

Microsoft Points....wow

Which one sounds better (not price wise):

99 cents a song

or

79 Microsoft Points a song, that just rolls of the tongue, huh?

They could have at least made it 77 cents....umm Microsoft Points. It's easier saying 77 than 79. I mean it sound a little smoother saying a double number like 77, 88, 99, etc. as opposed to 79, 89, 98, etc. It's like how prices are done (a little different, but similar principle); something is $99.99 instead of being $100. I just sounds a cheaper even if it's only by one cent.

I'm guessing as it's been said here that the remaining MP's could be used to redeem other things as well. Mabye games for the Zune, or something.

Eh, a little competition is always good for us consumers anyways.

 

[Meatball]

ok everyone register there and take em down! let's Go!

I've registered

 

[IJ Reilly]

Actually, consoles are always sold at a loss. The hardware goes cheap to entice people to the platform. All profits are made on games and game licensing.

Except in this case, Microsoft is losing money, hardware and software combined. Yet another winning strategy from Microsoft.

 

[matticus008]

Hmm. This doesn't sound right to me. Certainly Apple isn't making all of there profit from games.

Apple also doesn't sell any game consoles. It's true that most consoles are sold at or below cost in order to get them off the shelves--people are locked into whatever console they buy, as they are not likely to switch platforms many times. Sega, Sony, Nintendo, and Microsoft have all used this strategy in at least some console launches.

As for Microsoft points, there is some merit to it. As mentioned, if all Microsoft products can be purchased for points, it has the potential of starting a miniature economy. Just think if points come with product purchases--say you buy a Vista upgrade for $239 and you get, say, 5000 points with that purchase as a "bonus." You could then use those points to buy music, or save them to apply toward the next Windows retail bugfix.

It also has the potential to abstract away from price changes--MS can keep Zune songs at 79 points while adjusting the point:dollars ratio. This means that you can take your Microsoft Points to any country and you can always count on 79 points getting you a song--even if one day that equivalent is $1.17 or $.91 instead of $0.99. Apple's close market association with 99-cent downloads will make it difficult for them to change their price--any increase will get lots of public attention. The Zune thing would be more "wrath of the bloggers."

As for the Zune itself, the prototype works pretty well. Apple actually has a potentially strong competitor coming down the pipe--especially from a company that can afford to lose money on it for quite a long time.

 

[GFLPraxis]

You learn something new every day

This is why I hate Ipod Fanboys. Without Bill Gates, Apple would probably not have survived. Do you have any idea how much Microsoft invested money to Apple?

Wasn't it, like, 1% of the value of Apple?

 

[zim]

Wasn't it, like, 1% of the value of Apple?

1%.. wonder how many Microsoft points would that be?

 

[iGary]

1%.. wonder how many Microsoft points would that be?

$150,000,000 = 12,000,000,000 MS Points.

 

[generik]

Wasn't it, like, 1% of the value of Apple?

That is like saying $1000 is 200% of Bill Gates' net worth 40 years ago...

Back in those days Apple was almost worthless.

 

[zim]

Back in those days Apple was almost worthless.

Obviously they were worth something for MS to invest some money into them. MS needed Apple to survive, how else would they have ever furthered their ideas for Windows?.. Personally feel that Apple would have pulled through with or without MS .

 

[matticus008]

That is like saying $1000 is 200% of Bill Gates' net worth 40 years ago...

Back in those days Apple was almost worthless.

Well, if by almost worthless you mean somewhere in the neighborhood of $20 billion, then yeah, you're right. (Compare to $66B or so in 2005).

Of course, they lost hundreds of millions of dollars for FY1997, and near the end of '97 Microsoft invested about $150 million in the company--which definitely had a role in keeping the company afloat in the short term but certainly isn't the only reason Apple's still around.

 

[IJ Reilly]

$150,000,000 = 12,000,000,000 MS Points.

How much is that in dog years?

 

[IJ Reilly]

Of course, they lost hundreds of millions of dollars for FY1997, and near the end of '97 Microsoft invested about $150 million in the company--which definitely had a role in keeping the company afloat in the short term but certainly isn't the only reason Apple's still around.

Nope, not even in the short run. Even at that time, Apple had over $1 billion in liquid assets and little debt. The $150 million "investment" had nothing to do with keeping Apple afloat, long term or short.

 

[tringo]

Just one little thing I wanted to add is that it's actually equipped with an FM TRANSMITTER and tuner. I guess this saves poeple having to buy an iTrip equivalent.

I'm still not going to buy one but I wanted to correct some peoples misconceptions.

 

[2nyRiggz]

FM Transmitter and tuner... *Does happy dance*

Sorry I couldn't resist



Bless

 

[zap2]

Just one little thing I wanted to add is that it's actually equipped with an FM TRANSMITTER and tuner. I guess this saves poeple having to buy an iTrip equivalent.

....how many other players have that?

I'd sooner by a Creative player then a Zune, but alas Apple is my first choices!
(And again ignoring the whole Zune only works on XP, Come on MS would have been wise to strike hard and were it hurts, I mean they are not attacking Apple's home turf(OSX) and its not any cheaper then the iPod, yet they still lose money)

MS should have tried this
Buy Music and Videos on the Zune with Wi-Fi, 40Gb harddrive, Mac OS X and Linux support..and smaller then the current iPod all for 249. Then they might get some fans..still not me

 

[zap2]

Actually, consoles are always sold at a loss. The hardware goes cheap to entice people to the platform. All profits are made on games and game licensing.

Looks at a picture of the Wii....really?

 

[SMM]

I live in Microsoft country. I have been very close to the company since 1982. Even with their incredible success, I do not ever recall them being a great innovator. In fact, when they have been innovative, they have usually suffered many start/stops before getting it right.

Today, MS is seriously bloated with layers of management and approval levels. It is difficult for them to get even basic decisions made in a timely manner. They have multiple teams working on different project phases which do not mesh when assembled.

In my opinion, they better get some basic things figured out soon. Otherwise, they are poised to keep losing market share.