Microsoft reported awful numbers for Zune sales this holiday season:  54% decrease in revenue which equals $100 million difference from 2007.  In comparison, Apple saw its revenue decrease 16%, but they still brought in $3.3 billion in revenue vs. less than $100 million for MS.  I will admit, that looks pretty bad.  However, a few things to think about:  Apple released the iPod in 2001, and Zune did not arrive until 2006.  That is a lot of time to have the market to yourself and create brand loyalty.  If you had an iPod, and liked it, most people  will just stick with what they know, and will buy another iPod.  Plus, until recently, all of the music from iTunes could only be played on an iPod.  Honestly, I don’t know how many people would want to take the time to try and convert all of their music.  Finally, revenue figures include player sales, as well as on-line purchases like the Zune Marketplace and iTunes.  Now I am not just saying that the only reason the Zune did bad is because of its youth.  MS definitely has some blame in this…

Marketing, or the lack there of, is their main problem were the Zune is concerned.  I still get that “1, 2, 3, 4…” song from the last generation iPod commercials stuck in my head.  I have seen a few Zune commercials, but to me, it seems like they are not really trying.  I use to get excited when I saw a Zune ad on the back of a magazine, which is wrong.  I should be getting annoyed that I see too many, which is not the case.  Ok, my mini-rant is over.  Point being – You need to advertise to sell products.  However, I do have some sunshine to take away from the doom and gloom.  Harvey over at Zunerama has spoken with members of the Zune team, as well as his MS MVP rep, and the news at HQ is positive about Zune’s future.    MS announced that it is on track to release significant new generation Zune hardware before the end of the year.  Could this be the Zune Touch, Zune/Xbox portable media device, a Zune that changes into a robot to do all your laundry?  I believe it has to be more than just a Zune Touch, because Apple has already been there, and done that.  The moral of today’s story is that MS is happy where the Zune is, and where it is going.  I just wish they would spread some more of that news around.

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