Microsoft reports $100M decline in Zune revenue

Microsoft's newly-announced layoffs and declining profits aren't the only bad news in Redmond -- according to the company's quarterly statements, Zune platform revenue decreased $100 million, or 54 percent compared to the same quarter last year, due to falling device sales. Mega-ouch. Not all is doom and gloom for the Entertainment and Devices Division, which continues to be profitable with a $151 million haul: Xbox 360 and PC platform revenue increased six percent ($135 million) to $2.2 billion. Meanwhile, Apple saw a three percent increase in iPod sales over the same period, so we're anxious to see what Microsoft has planned for reviving the social.

[Thanks, Jason Wong]

[raybiker73 Posted Jan 25th 2009 8:44PM]

why won't they finally just make the Zune compatible with Mac? I'd ditch my iPod and buy one tomorrow. But, they want it tied to Windows, so that leaves me out of luck.

[Mister Snitch Posted Jan 25th 2009 9:17PM]

@nohone

"How are sales of the Apple TV? I mean, it is the most awesomest of all products, right? So it should be selling billions of units, right?"

Uh... actually, they re reported to be selling nearly 3X as many Apple TVs, vs same quarter a year ago (i.e., BEFORE the economy really tanked). Should have checked your facts before opening your mouth, clownboy. But don't worry - a nasty enough retort will MAKE YOU RIGHT!

http://www.macworld.com/article/138353/2009/01/liveupdate.html

[(Unverified) Posted Jan 26th 2009 3:19AM]

What the hell is it with all the marketing bullcrap with you people? Consumers don't categorize MP3 players first and then categorize them again, and again. And when they've got 2 options, they choose. NO!!! They see the cash they have, they look at everything EVERYTHING within that cash limit, and yes if you can spend $229, you'll look at the Zune, Touch, nano, SanDisk, and they buy. It's as simple as that. At the end of the day, buying 1 mp3 player from a 100 is the only choice people make.

And yes, it's sad that MS hasn't been able to compete with Apple, because Apple needs serious competition to push it. You see how Amazon mp3 made forced Apple's hand at DRM-free music? Apple needs healthy competition. But yes, the Zune is in trouble.

[(Unverified) Posted Jan 28th 2009 2:38AM]

You deserve it Ballmer you cheap fuck.

[MeowingtonTCat Posted Jan 28th 2009 6:18AM]

What is an IPod Touch supposed to be, anyways? A personal media device? If I wanted web browsing and a touch screen, I'd buy a pocket PC or similar. Something that actually has a real OS instead of an awful proprietary interface. It's not even in the same category of device as the Zune. If you actually stacked the IPod Touch up against the Zune as an MP3 PLAYER, the Zune would win hands down. The interface is far easier to navigate your music with. The thing has a single pad you can use for changing songs and volume, so you don't end up having to take it out of your pocket to use it. It has 80GBs of space so you can get your entire collection on the thing if you want. If you wanted to boast the feature set of the IPod Touch in comparison to the Zune's, you'd be listing things that have nothing to actually do with MP3 playback.

I'm not trying to be a Zune fanboy here, either. I've just used most MP3 Players out on the market, and the Zune seems to work best for playing music. It has its share of annoying problems, though. Just none of them have to do with the hardware playing your music, which should be the most important function of an MP3 Player. I just hope that with the Zune failing, a new competitor arises that can hold up to the IPod in sales. I'm really looking for a good high capacity player with a sharp style and interface that's not as annoying and ugly as the IPod series.

[(Unverified) Posted Jan 28th 2009 3:40PM]

The Zune made more than $100 million in the year-ago quarter?

[simonduz Posted Feb 3rd 2009 9:01AM]

The proof of the zune's worth is in the user.
My typical teenage daughter owns a zune because it is a cost effective model for electronic media and it just works.
In 13 months of usage she has downloaded over 18,000 mp3's while subscribed to the zune marketplace. She can purchase music and synchronize her zune anywhere in our home wirelessly, and enjoys the fact that the XBOX360 supports the device with no user interaction. It just works...

I would find it hard to justify the purchase of any other MP3 device for my teenager without a subscription service.

[(Unverified) Posted Apr 15th 2009 8:56PM]

Hi, the Zune is not aimed at the touch in any way, shape or form. The touch has 32gb of space hardly enough to contain entire music collections, never mind dvd collections and the like. The Zune has 120gb of storage and a large enough screen to watch movies day in day out. The Touch is a phone with some music, video and gaming ability and the zune is firmly planted as a multi media player market unlike the touch. Most experts agree the Zune when compared to the Ipod Classic (rival) is miles ahead both in display, audio quality and features, have you tried to watch a movie on the classic? Its screen is half the size of the zune and is only fit for clips not watching a full movies for a couple of hours at a time. What I will say about the Zune however is the quality of the newer models like the 80 and 120 are total rubbish when compared to the previous 30gb, I am now on my 3rd 120gb. The previous 120s had mulitiple stuck and hot pixels which for a small media player is a major flaw. Quality control is non existant and a player costing nearly £200 in the UK should have a no stuck or hot pixels. Yeah if it was a fraction of the price or a 40" screen then you would expect a few stuck pixels (unless it is a samsung) but not on a high end player like the Zune. The Zune might have a inferior battery life, but this is down to the screen being nearly twice the size.