An interesting article came via iLounge about Microsoft’s investment in Zune.
I wonder if they sunk “hundreds of millions of dollars” in order to get flash RAM at a competitive price? If so and the Zune is a bomb, that’s a big fucking write-off.
I thought convicted monopolists are not allowed to muscle into new markets like this? IBM was very careful on how they created the IBM PC so as not to damage their standing in the Sherman lawsuit.
I guess the business lesson here to lose your anti-trust case, get convicted, and wait for an idiot to take office so you can act as amoral as possible.
One thought on “Microsoft iPod moneypit”
Impressive analyst comment on the Zune.
Note how he mentions the Apple patents on the click wheel, iTunes + iPod integration patents and software, the fact that cellphone + music stuff doesn’t dent player sales (because the killer app on the cell phone is the cell phone), and the fact that this will cannibalize the existing Windows Media Player market first before it touches Apple.
Any wonder why Creative settled their lawsuit on terms favorable to Apple. Look closer at the settlement and it becomes more clear that Creative is no idiot and knows which is a bigger threat to their meager market share: Apple’s iPod or Microsoft’s Zune.