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zhapchit

Microsoft Zune preview

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But with a huge market share, they can buy in bulk and save a lot. Besides, I believe that they will eventually raise the price, be it in the current generation, or the next (if the Zune idea survives).

 

but at this point in time, Apple is the one who is buying in bulk and enjoying massive economies of scale. case in point, the samsung flash chips. MS is losing money for every unit of Zune sold, and their music service isn't going to make them any more money too, since their pricing is similar to the iTunes music store. and just like their XBOX venture, MS is literally throwing billions of dollars away in their attempt to grab market share.

 

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Huge gambles.

 

Microsoft is definitely moving away from their OS/software origins.

 

Either that, or that they are going deeper into the software roots, by creating hardware which MUST run on their software.

 

That'll create a new monopoly, which will ultimately benefit them. The biggest pro I see of this is the potential seamless transfer from hardware to software devices for the devices, which was previously only available to Apple + iPod users.

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