Microsoft: Zune success good, still not satisfied

At a time when the Apple iPod controls more than 70 percent of the MP3 player market and continues to rack up strong sales numbers, it seems like every other company is simply fighting for second place. One such company is Microsoft, which bravely entered an already crowded market knowing its main foe has a strong following of dedicated loyalists.

"Zune is about having a choice. With Zune you can customize the back of the player with laser etching, you can pick your own background image on the player, you can listen to the radio without an add on and for the price of one CD a month you can have access to millions of tracks," a Microsoft spokesman told CDFreaks. "You can also share the music you listen to on your PC and your Zune player with friends in the Zune Social online music community, MySpace and FaceBook."

Twenty months into the Zune effort, Microsoft is pleased with the MP3 player's success, and has had to squash unconfirmed rumours it planned to pull the Zune from store shelves.

NPD data indicates the Zune has the number two position in the market among HDD MP3 players and is selling decently in the flash sector also. The Zune is said to be meeting all internal sales projections and has exceeded expectations since it was first launched.

The main differences between the Zune and the iPod are the following features: a wireless sync feature, social ability to listen and share music to other Zune listeners close by, software some users find easier to use than Apple iTunes, and a built-in FM radio.

"Zune is not fading away and again, we are pleased with our progress against an entrenched competitor (Apple)," Microsoft said. "Zune is a long term investment for Microsoft. Today there is much focus on the stand alone portable media player. But if you look across the Entertainment and Devices Division at Microsoft you can see how, in the not too distant future, a customer’s entertainment experience could flow across the PC, Xbox, mobile phones and automotive."

While nothing specific has been announced by Microsoft, the company said it is not done in the MP3 player market, and consumers should keep their eyes on Zune.

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