Matt Rosoff, a CNET Blog Network blogger who writes "Digital Noise," said in a recent blog post that he spoke to Microsoft's marketing director, Adam Sohn, earlier this week, and Sohn told him that although Zune sales were poor, Microsoft still plans to release a new set of players before the 2009 holiday season. According to Rosoff, Sohn said "they'll be a surprising step up from the current models."
Great. But I don't know why Microsoft plans to waste its time with the Zune. According to its latest quarterly filing, Zune platform revenue decreased $100 million, or 54 percent, during the last quarter. Considering iPod unit sales were up 3 percent during the same quarter and Apple enjoyed $3.3 billion in revenue, I'm not convinced Microsoft's plan to offer new Zune models is a good idea.
Instead of wasting our time and its money on the Zune, I'd like to see Microsoft ditch its attempt to make progress in the personal music player market and tackle the handheld gaming space. Why not? It could transfer all its funding and development costs to that division and in the process, jump in on one highly lucrative market.… Read more