KC Hill
Dexter
Craig HillMicrosoft Zune price fixed
September 28th 2006 16:22
The first step in doing so would be introducing a digital audio player of their own, and Microsoft has this down pat with the upcoming Zune. This digital media player will share roughly the same price as Apple's recently revamped 30GB iPod Video and will go the same way as the Xbox when it was originally launched - Microsoft will lose money on each sale.
The initial loss is hoped to spur greater sales numbers which will result in repeat customers over the years. Once there is a substantial subscriber base, Microsoft can breathe easier as a person would not change his/her brand preference so easily. The 30GB Zune will be priced $0.99 higher than the iPod Video at $249.99 when it is released this November 14th. You can download songs from the Zune Marketplace for $0.99 a pop which is similar to Apple's very own iTunes store.
Will existing iPod owners pick up a Zune as well just out of curiousity, or will their loyalty stand firm in the face of a fierce competitior? What about those who are thinking of purchasing a digital media player at this moment - will you put off your decision until the Zune is released, and then begin a comparison feature by feature, or will you jump into the fray now and pick up a 30GB iPod Video in blind faith?
Source: Apple Insider
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