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Microsoft Zune support strong despite sales dip, new hardware and software in store

Rumors of the Zune's death have been greatly exaggerated, with new models on the way.

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Mobile | by Stephen Schenck | Wed Jan 28, 2009 12:32PM | 2 comments

Microsoft is sticking to its Zune guns, affirming a commitment to the struggling media player even in light of poor sales. Zune sales dropped 54% last quarter with the recession in full swing, compared to an only 16% decline in iPod sales. Combine that performance with the recent leap year software bugs shutting players down and Microsoft's big staff reduction, and you wouldn't think that the Zune would be getting the kind of support the company is now giving it.

The Zune's Director of Marketing spoke in an interview this week to address concerns over the line's future. He pointed to several possible causes for the substantial drop in sales, including the lack of a new Zune revision driving holiday sales and a media player marketplace nearing saturation. One of the reasons the iPod has been doing so much better, according to his theory, is that Apple sells its media player worldwide, while the Zune is limited to a North American market, amplifying the effects of the recession.

Besides the repeated assurances that the Zune isn't dead, we got promises of new Zune hardware and software on the horizon. Of course, there were no details on upcoming features or an expected timetable available, short of a mention that "progress" will be coming sometime this year. We sure hope so, because the Zune needs a good shot in the arm to perk back up and stay in the media player game.

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coffee external link (11:56 AM on Fri Feb 13, 2009)

I know what Microsoft should do to improve their Zune sales: get someone besides the big, hairy guy with a Zune tattoo to be their marketing front man/woman

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Ayurveda external link (7:38 AM on Thu Apr 16, 2009)

I have the Zune 120Go and definitely would go for a larger hardisk one. No-one apart Archos is in this market...

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