Zune cost Microsoft $100 million in Holiday revenue!

Posted at 1:47 am January 24, 2009 by | 3 comments

zune_originals_80gb

Amid a several thousand employee layoff, news is coming out that Microsoft’s Zune lost around $100 million (54%) in revenue this past holiday quarter.  In stark contrast, Apple’s iPod earned 3% increase in iPod sales totaling $4.382 billion!   It isn’t hard to understand why the Zune is quickly dying…Microsoft is stalling on the innovation and updating front.  While just about every other portable audio player manufacturer updated their players (hardware and software), Microsoft went the software only route.  I know Microsoft has been touting that they are a software company first recently, but if they are at all serious about the Zune, one would think that they would put more effort into it.  

 
Source: Mac Daily News

  • Gib

    Now that I think about it, maybe Microsoft shouldn’t pull out. If they actually tried they might help spur some new innovation for the iPod. Competition keeps companies on their toes

  • Gib

    Wow. Microsoft just needs to give up on the Zune.

    • Gadget God

      So true. Either give up or start actually doing something with it!