Microsoft’s Zune – Where Do We Go From Here?

For my inaugural article, I’m going to write about something very near and dear to my heart – Microsoft’s Zune.  I was one of the original adopters of the Zune; I even ran Boot Camp on my Macbook Pro just to use it.  But as much as I want to see the Zune succeed and overtake the throne currently occupied by Apple, I know in my heart it’s just not meant to be.  The Zune continues to be an excellent portable media player, but it just doesn’t bring anything to the scene that is going to woo potential buyers away from the iPod.

So here we are, almost 3 years after the Zune was first released, pondering the future for the mp3 player-that-couldn’t.  Sure, Microsoft is positioned to release an upgrade to the line, the Zune HD, this coming fall.  And sure, that player is pretty amazing considering its current list of specifications.  But in all honesty, there’s no compelling reason for people to switch from their current player of choice. The average user doesn’t even know what OLED is, nor do they really care about using their Zune HD to play high-definition video on their television. Chances are if they’ve already bought a Zune, they probably know MS products fairly well and therefore can stream their content from their computer to their Xbox 360 and play that on their TV.

So what path should MS take in terms of the Zune media player?  Should they upgrade it consistently despite sluggish sales and a mere 4% market share? (Compared to Apple’s 71%) Recent news tells us that Microsoft plans to incorporate the Zune software into the Windows Mobile platform.  For me, this can’t come soon enough.

Microsoft already has a winner on its hands with the Zune 3.0 software.  It’s a much more artistic and well-designed alternative to the iTunes jukebox, and those who use it (while maybe few and far-between) only have positive things to say about it.  The main complaint circulating about the software is its marketplace’s lack of movies, but that just requires a few handshakes between Microsoft execs and those at the major movie studios. (Maybe go through Netflix to provide the movies? A great idea, but that’s an article for another time).

And while the Zune HD might be generating some buzz as of now, what Microsoft needs to be concentrating on is Windows Mobile.  Back in February at the Mobile World Congress in Spain, Microsoft introduced Windows Mobile 6.5, a massively underwhelming update to version 6.1.  (For the full run-down on why Microsoft fell short, see Engadget’s editorial on the topic).  Windows Mobile comprises a huge chunk of Microsoft’s services (and therefore revenue), and has, unfortunately, been stagnating while other vendors (Apple, Palm, Blackberry, and most of all Google) have been out innovating and releasing critical updates to their mobile operating systems.  According to Microsoft execs, the company does have future plans for the operating system, but to me, they are too bogged down and have their resources too divided between Windows Mobile, Windows CE, and the Zune interface.

Microsoft’s long-term goal for its mobile operating system is to be able to provide you with all your content all the time.  This means that your media, your productivity apps (Microsoft Office), your documents, contacts, etc. will be easily accessible from all your devices.  This is certainly an ambitious goal, and would require a great deal of cooperation from the Xbox, Zune, Windows, and WinMo teams.

But maybe this goal isn’t too far off.  Let’s not forget about Microsoft’s 2008 acquisition of Danger, the producer of T-Mobile’s Sidekick.  There has been much speculation as to whether this recent purchase would eventually lead to a Zune Phone, but lately it looks as if MS could incorporate Danger’s services into a new media-centric version of Windows Mobile.

If Microsoft wants to make a big play, they key here is Windows Mobile 7.  Forget Windows Mobile 6.5, an essentially re-skinned version of 6.1 (which was in and of itself a re-skinned 6.0).  WinMo 7 has to not only match Blackberry, Palm’s WebOS, the iPhone OS, and Android, it has to bring a sense of synergy that you think you will now need.  Incorporating the Zune mobile software (an already tried and true format, as mentioned before) fully into the WinMo OS and using the Zune desktop software as an all-in-one phone manager (to connect either via USB or wirelessly) can only result in a better user experience. Top this off with the ability to wirelessly stream your content between your home computer, your Xbox 360, and your Windows Mobile phone, and you’ve got an excellent personal entertainment device that’s also suited to be your business phone.

Now the million-dollar question – what’s the likelihood of this all coming true when MS unveils the next iteration of Windows Mobile next year? Fairly likely, in all actuality.  Many MS execs have discussed the possibility of including the Zune software in some capacity on mobile phones, they just haven’t said to what extent.

Call me an optimist, but after Microsoft’s recent homerun with Windows 7, I’m hopeful that they can turn around their mobile operating system too.  All it takes is some great innovation in the field of integration.

Advertisement