Now, to be fair, were not perfect either, so we have to do a better and better job of making sure our service is always there. And you cant have outages. Xbox Live cannot go down. Thats just sort of the demand. IPTV cannot go down. Why did AT&T and those guys pick us over the startups that were all in this space? Because Microsoft could say were going to put the resources behind it to make sure it doesnt go down. And it is the benefit of bringing our brand to bear.As soon as EMI says, "Hey, we want to do this. When do you want to do it? How do you want to do it?" I mean, all the DRM situations are under control of the labels and actually the publishers, and actually publishers are as important as the labels are in that sense. And the artists certainly have some degree of influence. I dont think of DRM as something we like or dislike. Its something were asked to do. Somebody says, "Hey, we dont want you to do it," we say, "OK, so what format do you want it published in? You can use MP3, you can use ACS, you can use Windows Media. Tell us what it is, tell us if you want no protection, tell us what that means, and well go, and well work through the business model, sign the contract, and away you go." So, to me its just a function of when they want to do it and how they want to do it. The EMI Apple thing was not new news to anybody. Theyve been talking to everybody for a while. And so then it comes down to a business arrangement and all the things that go along with that. I just thought Id throw it in there. I agree, it wasnt huge news, but it was interesting. Its not a big surprise, its interesting. It would have been more interesting if it had been Warner or Universal. In a way, because of their market position [EMI] can either prove or disprove that works, but theyre not a tipping point provider. Youd have to look to Universal or Warner or Sony BMG to say, OK, one of those guys moves [in] that direction, it changes the dynamic in a different way. In some ways thats more interesting. To read more about the Zune and the community that has developed around it, click here. What kind of demand do you expect for Xbox 360 Elite? Well, initially I think the demand is going to be based on how much we can supply. So, Ill tell you that right out of the gate. I think well sellI mean, I had friends who tried to buy it this weekend, and they were all gone, and I think youre going to see that for a number of weeks, just because its a new product. Its a different product for us to manufacture, and were going to make sure we do it right. And, I mean, the volume is going to be somewhat constrained for a period of time. Next Page: Strong demand from enthusiasts.
Back to Zune, when will the Zune music store have DRM (digital rights management)-free content from EMI?