Much like a social network, the recently launched Microsoft Zune needs active users to reach its potential. Unfortunately for the Zune, these users have to be physically close in order to connect. As a result, Zune’s biggest competitive advantage (wireless music sharing) relies on mainstream adoption in order to be an advantage at all. So how is Microsoft’s newest product playing out?

Looking at online retail demand, the Zune was off to a respectable start, but is now struggling. The chart above shows the number of shoppers at top online retailers for the Zune, iPod Nano and iPod Video on a weekly basis.

    • In the week of its launch (Nov. 14th), traffic to Zune product pages surged 266% bringing Zune demand close to that of its most direct competition, the iPod Video.
    • Both iPod offerings saw an explosion in demand as holiday shoppers started to ramp up their holiday spending (Nov. 18 – Nov. 25).
    • Since the Thanksgiving weekend Zune demand has held steady, but continues to trail the Ipod Nano by a factor of 4x and the iPod Video by a factor of 2.5x.

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  1. Red Rooster

    My understanding is that if you transfer a song to another Zune the song only lasts for 10 days and can only be played a maximum of three times. You would think MSFT would mention that in their ads…. oh wait, once people discover this restriction they won’t want a Zune. I’m surprised demand hasn’t completely plummeted.

    (Side note: I own an Ipod, but couldn’t hate the ITunes software more… I still think someone can spoil Steve’s party, but it doesn’t look like Bill is the crasher.)

  2. Tomas Sancio

    Zune is being compared from day one whereas it should be compared to other iPod competitors its cannibalizing. I figure those figures will show better results for MS.

  3. cs

    @tomas: ballmer isn’t interested in cannibalizing other wma-players. he wanted to kill the ipod. so the comparison is quite alright.

  4. Interesting

    My understanding is that the ipod costs more, has less features, a smaller screen, 1/8th the colour capabilities , no wireless p2p network, no 360 network, no song sharing at all, $0.13 more per song, no video sharing and wont be upgraded like the zune, and costs 50$ more, clearly with these highlights in mind one can use logical reasoning to deduce the better purchase enstead of the more popular one.

    But thats just to my understanding of the sit.

  5. ZUNE_FAN

    I agree with “Interesting” (commenter), Zune definatly beats Ipod. Quality is great. Microsot would never come out with any that is less then 99% perfect. People buy Ipods cause they’re “popular”. Ipod lovers wouldnt even think of anything else. Nothing even with better qualities and fetures ,like,lets say..The ZUNE! i have one myself. its sweet. the wireless connection is great and works from up to 20 feet or more away! BUY THE ZUNE!!! IPODS SUCK!!

  6. pradeep

    I was given an iPod as a birthday gift a couple of years ago. Immediately, I fell in love with it, and it revolutionised my listening habits. It looks good, it is easy to use, and my particular model stored 5,000 songs, about half of my CD-based music collection.

  7. Danette 4 Zune

    I think Zune rules the roost, iPod needs to make some serious upgrades if they hope to compete!

  8. fersnizaly

    (11 years old) i think it all boiles down 2 a competion 4 money between mac and microsoft zune is only an answer mac should be doing something flashy soon to get back at the zune, though i have 2 say i like the zune better becuase of the fact that u can have a backround of pics and its software. though im kinda fan of microsoft so ofcourse im going to have 2 say that zune is cooler.

  9. Indecisive

    It’s my comparison that the zune is more apt to people who like personal preferences, you can change the background and has lots of colors and it allows you to really make it reflect your personality. It also has a large amount of music capacity for less than the ipod.
    However the ipod is a cookie cutter product, its easy to use and has thousands of different cases and products. It’s also displayed everywhere and is easy to access, (the zune is catching up to availability though) also the ipod has a lot of popularity that obviously make it wanted by an enormous amount of people who love being in style and having the newest it thing.
    I personally have an ipod video and i am fond of it but if i had the change to trade it in for an ipod i would in a heartbeat just because of its quirky features and ability to personify it.


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