Kevin’s Blog

Zune

So, after the iPod price drops Microsoft has rethought their offering and lowered their initial price. Like with the Xbox, they’ll be taking a loss per-unit to try and break into the market. But even at a loss, they’re charging slightly more than the iPod (99c more).

Even more confusing is to buy songs for the Zune you buy “points” (80 points per dollar) and songs cost 79 points each. Obviously a ploy to get folks to think the music is cheaper than iTunes Stores $0.99 per track, as well as banking all of those single points that are going unspent, until you buy 79 songs then you will have enough extra points to buy one more.

If you do the math, the Zune tracks actually are cheaper, $0.9875 per track. You save a whopping $0.0025 (1/4 cent) per song compared to iTMS! So if you buy 396 Zune songs you’ll make back the extra $0.99 you paid vs the $249 30GB iPod? After you buy 396 it’s ALL PROFIT!

And it comes in BROWN too?

I can see the marketing headlines already: “Zune, the ‘number two’ music player!”