Microsoft should quit while it’s behind. Its MP3 player, the Zune is a failure. But no harm in trying.
But instead of moving on, Microsoft (MSFT) Zune and Xbox boss Robbie Bach is saying that the effort was worth it because without the Zune, the world would never have known the “Zune Store,” — Microsoft’s iTunes clone that you’ve never heard of.
CNET: Bach insisted that music was a required component of the “three screen” experience, and that Microsoft had to be a leader rather than a mere technology provider in this space. If Microsoft hadn’t built the Zune, it wouldn’t have been able to create the Zune software and Marketplace, which have become pretty solid after a couple false starts.
Ahem…does Microsoft really think its Zune store will really take off? Amazon (AMZN), perhaps the best e-tailer on the planet, has barely been able to crack the digital music market, with an estimated 8% market share. If the Zune is about the Marketplace and not the player, why does Microsoft think it can succeed where Amazon has failed?