Microsoft Zune to Retail for $299

Retailers point to a $299 price tag for Microsoft's new PMP

As we get closer and closer to launch of Microsoft's Zune portable media player (PMP), more information is starting to leak out. DailyTech has already reported that Microsoft has sought the help of iPod accessory makers to develop for Zune players and that the player will focus on community-based sharing system via WiFi. The latest news to come across the wires is that the initial Zune player will be priced at $299 when it is launched on November 14.

There had been previous rumblings that Zune would launch at same price as a 60GB 5G iPod -- that would place it at the $399 mark. But the latest information from Microsoft insiders and retailers suggests a more palatable figure and confirms the report that the player will launch in three colors (previously reported as white, black and brown). TWICE goes on to say:

Retailers who have been briefed by Microsoft told TWICE the player will offer Wi-Fi capability, but will require that the portable be connected to a PC for the actual purchase of songs. Retailers, who claimed Microsoft remained “fuzzy” on the Zune’s wireless capability, said only that Zune will allow users to bookmark songs that may be shared via Wi-Fi, but that users cannot purchase songs on the go from the Microsoft Zune Web site.

It had been previously reported that users of Zune players would be able to purchase music directly from their player thanks to the integrated WiFi, but that doesn't appear to be the case now. Being able to purchase songs on the fly without being tethered to a PC would be a big boon for the PMP, so Microsoft is missing a prime opportunity here. Hopefully the feature will be implemented later on down the line with future Zune products. Regardless of how things pan out with the initial launch of the Zune PMP, even Microsoft knows that it has a long battle ahead.

30GB Zune to Retail for $299

Microsoft's "iPod killer" Zune has a price -- reportedly $299 -- when the unit reaches stores this fall, according to TWICE.

Apparently retailers have been told by Microsoft that the Zune will have Wi-Fi capabilities, sort of -- the unit will have to be connected to a computer to buy songs but sharing of music of Wi-Fi can happen.

The two retailers TWICE spoke with said the Zune would have a 30GB hard drive, and were "pleased" with the feature-per-price package of the Zune. -- Jason Unger

* Street price: $299
* Some Wi-Fi capabilities
* 30GB hard drive

Zune Wi-Fi plan draws static

New tidbits about Microsoft's soon-to-be-released Zune were eagerly snapped up by bloggers this week. According to a report in This Week In Consumer Electronics, the devices will sport a 30GB hard drive and sell for $299. They'll also come in three colors.
Zune Wi-Fi plan

But what many readers focused on was that the planned Wi-Fi connection may not support wireless music shopping.

According to TWICE, retailers "said only that Zune will allow users to bookmark songs that may be shared via Wi-Fi, but that users cannot purchase songs on the go from the Microsoft Zune Web site."

Blog community response:

"They're also reporting the Zune won't allow for music purchases on the go, which kind of flies in the face of that whole 'onnected entertainment'thing, as well as the idea of putting WiFi in a portable, so we're looking at it somewhat skeptically for the time being."
--Engadget

"If Microsoft wants to sell a portable media player that is competitive with Apple, they are going to have to offer something special. Right now, the only thing that seems to set Zune apart is the WiFi ability. Theoretically that could be a big selling point."
--PVRWire

"If that's what they are doing, boy do I have criticism. WiFi access, but no buying direct from the device? The whole point would be to not have the blasted thing tethered to a PC. Someone visit Redmond with a tree - I think it's going to take more than a cluestick."
--Smalltalk Tidbits, Industry Rants

Posted by Margaret Kane

Tunes + Games = Zune

By Lou Kesten

The Associated Press

Originally published August 10, 2006

It sure is hot out, but at least gamers have their PlayStation Portables and Nintendo DSes to distract them from the miserable weather. And soon, Microsoft will be joining the portable entertainment parade with a device called Zune. Alas, Zune isn't the dedicated game machine a lot of gamers were hoping for. Instead, it's an attempt to compete with Apple's iPod by building a digital music player that will tie into the Xbox, Windows and Microsoft's Media Center software. The Xbox Live online game service is one model for the Zune's network capabilities; Robbie Bach, president of Microsoft's entertainment and devices group, said the company hopes to create a similar sense of community with Zune, enabling users to share playlists and videos or find band information...

Zune + XM, the Confusing Link

A recent Associated Content article is suggesting that XM and Microsoft are working together on some kind of satellite radio functionality for the Zune. Unfortunately their logic is a bit flawed.

The WiFi antenna also will help Microsoft to support XM radio on the Zune, something they've been looking into.

Both XM and Sirius have the ability to stream online. So if the Associated Content is suggesting that the Wi-Fi antenna will be used to stream satellite radio, then it doesn't really matter which big player is involved, because they will both be able to be used over Wi-Fi on the Zune.

But on the optimistic standpoint, are they suggesting that the Wi-Fi antenna will double as a satellite radio antenna? Is that even possible? Any smarty engineers want to shed some light on this? Drop a comment or shoot me an e-mail personally, the link can be found over on the left. – Travis Hudson

Edit: I realized that the commenter, werk, is right. I have gotten so caught up in this Zune nonsense I assumed it had a browser integrated, which is doesn't or if it does we don't know about it yet. But regardless, if it has Wi-Fi it will be hacked or have a browser released for it, it would just be stupid not to—re: Nintendo DS. But the question remains, will the Wi-FI antenna double as a satellite radio antenna? I've had some people say yes, some people say no.

Zune: IPod Killer? or yet Another Victim?

The Pros and Cons of Microsoft's Upcoming Zune Media Player

Let's face it: Microsoft's Zune has to be brilliant to compete with Apple's iPod series. Apple has managed over the years to get a huge customer base for their iPod portable media players, and even though there are other alternatives they really don't seem to be making a dent in Apple's stronghold. Will the Zune change that? Depends on just how good it is.

The Pros

- WiFi: This is a big one, something I think Apple should have put into its newest models. Sure, it's not that hard to put in a USB cable, but why would you want to if you don't need it? It also keeps you from having to carry a cable around if you want to sync up with your laptop; one less thing to keep in your pockets.

- XM Radio: The WiFi antenna also will help Microsoft to support XM radio on the Zune, something they've been looking into. If Zune is to kill the iPod, they need something big that the iPod doesn't have; this may or may not be it, but they'll need all the firepower they can get. With the iPod lacking even an FM radio, this could be a big advantage.

- Windows Media Player: If you're on a Windows PC, you probably have Windows Media Player, and your iPod doesn't work with it. Zune (being made by Microsoft) is designed specifically for WMP; in fact, it won't work in iTunes at all (depending on your player preference this could actually be a problem for you). The Zune will also be tailored to work with WMP's new URGE music and video download service, co-created by MTV.

- Optimized for video content: It's pretty clear when I look at my iPod that it's designed to be used primarily for audio, not video. Which is fine for my purposes, but portable video is getting more popular, and Zune is brand new, meaning it's built from the ground up to excel at video playback. The bigger screen should help immensely. Hopefully the battery life in video playback won't be as disappointing as iPod's two hours.

The Cons

- It's not the iPod: Sadly enough, a lot of people buy an iPod just because it's an iPod, and all their friends have one. Personally I bought mine because, after doing my research, I found it best suited my needs, but a lot of others don't. Even if Zune turns out better than iPod, there will still be the "fanboys" that stick with their iPod.- Price, price, price! One of the biggest complaints against the iPod is that it's too expensive for what you get out of it. But the 30GB Zune will be $399 at launch, which is $100 more than the 30GB iPod. If Microsoft wants to sell a lot of these, they'll want to make the price more competitive. Even if the extra features are worth the price, $400 or $500 won't be in as many consumers' price ranges.

The bottom line? Not too much is known about the Zune yet, f anyone's going to bring down the iPod, I think Microsoft has a good shot at it. But they better not blow it. The more features they can pack into the Zune the better, because when push comes to shove Microsoft will need everything they've got to win a spot in this market.