Zune hardware apparently dead, software and services live on

Microsoft's Zune-branded MP3 players are set to leave the market, after reports that the company will be concentrating on smartphones and services after lacklustre market performance of the hardware.

<a href='http://meincmagazine.com/microsoft/news/2011/03/zune-hardware-apparently-dead-software-and-services-live-on.ars'>Read the whole story</a>

 

[arcadium]

In that sense, strategically, the Xbox is a trojan horse. It's in your living room, waiting for the day when Microsoft decides to turn it into a more fully-fledged computer that just happens to be plugged into your TV. It has a part in a strategy that dates back to when Bill was still heading the operation. Nobody, but nobody, is going to say "let's not fund XBox anymore". It'd be throwing away your own career.

But a phone or Zune hardware? That's nothing. "Bill never said anything about that, and that's not the strategy that got us to where we are today..." is probably the thinking.

It's a contrast to Apple. Look at Apple TV. (Don't worry, nobody will see you doing it, because nobody else is looking at it!)
Apple TV is part of Apple's big strategy. The fact that it hasn't found a widespread audience yet is irrelevant. They keep just plugging away at it.

Apple TV is Apple's Xbox. They'll fund it no matter what. Zune's problem is that it wasn't ever Microsoft's Apple TV...

This analysis seems mostly right to me. e.g., take away XBox Live integration, and you lose a major WP7 differentiating point.

I think Apple has been pretty straightforward about Apple TV. It is a way to allow you to take your iTunes content to your TV. Apple TV is not a good comparison financially to the XBox. Apple TV costs Apple a minimal amount of money in development (most of the SW dev is prorated across the entire iOS line, and the HW is also similar to the iPod Touch, etc.). And also, I'm pretty sure Apple is not selling Apple TV at a loss. I think Apple treats Apple TV as an accessory to iTunes, and the iOS devices (with the addition of airplay).