The Zune talks, but is anyone listening?
Posted by onlydarksets on February 2, 2008
Looking through the paper today, I see that Microsoft has dropped the price on the Zune 8gb by $20, down to $179. Personally, I think this is a brilliant move by MS – right now, at a high level, the Zune has failed to distinguish itself from the iPod. Yes, there are feature-by-feature differences, but the bottom line is that you can get a 80gb iPod for $249, or a 80gb Zune for $249; same with the the 4gb iPods/Zunes ($149) and, up until today, the 8gb iPods/Zunes ($199). Now, though, there is a distinction – price point. Until the Zunes deliver the next “killer” feature (which ain’t wifi, btw), this is a great way to draw a distinction without underpricing itself – drop the price on its mid-range offering.
I think the most interesting part will be to see if Apple responds. I think it will not, since it never has in the past. Dropping the price on the iPod would be a show that it considers the Zune a threat, and I don’t think that’s how Apple rolls.