Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Subscribe
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Subscribe
    Home Latest News

      Microsoft Shares Its Recipe for Zune’s ‘Secret Sauce’

      Written by

      Mary Jo
      Published July 28, 2006
      Share
      Facebook
      Twitter
      Linkedin

        eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

        REDMOND – Microsoft is planning to invest “hundreds of millions” and lose money through 2008 to make its recently announced Zune portable media player a success.

        Robbie Bach, president of Microsoft’s Entertainment and Devices division, shared more details about Microsoft’s vision for its iPod competitor with Wall Street analysts and press attending Microsoft’s annual Financial Analyst Meeting here on July 27.

        Bach leads many of the consumer-focused businesses at Microsoft. Gaming, TV, music, video, mobile devices, home-productivity and other entertainment-focused products and services are all part of his organization.

        “Our secret sauce for tying all of these together is community and services,” Bach said. “Services is a cornerstone to what we are doing.”

        Bach and other Microsoft executives speaking at FAM pointed to Microsoft’s Xbox Live online service and community strategies as the model other parts of the company are striving to emulate.

        When Microsoft launched the first Xbox console, the “attach rate” for Xbox Live was 10 percent. Currently, the attach rate for Xbox Live with Xbox 360 consoles is 60 percent. There have been more than 34 million downloads from Xbox Live Marketplace, Bach said. Microsoft believes it will be able to double the number of registered Xbox Live members from three million to six million within the next 12 months, he added.

        Microsoft plans to expand its Xbox Live Arcade presence in the coming year; to add music and movie downloads to Xbox Live Marketplace; to launch a Webcam for Windows Live, as part of an “Xbox Live Vision” campaign; and to more tightly integrate advertising into games, Bach added.

        Microsoft’s plan with Zune is to emulate the integrated Xbox/Xbox Live hardware/software/services model, Bach said. Bach told analysts to expect it to take Microsoft at least three to five years to start making a dent in the portable-player market. Its first entry will be one new product which it will launch in the fall in the U.S., he said. Microsoft plans to expand its Zune line to encompass more kinds of players and other geographies next year.

        Bach said to expect Microsoft to spend “hundreds of millions” – but not billions, as it has on the Xbox – on developing and marketing Zune. Microsoft expects to take a loss on Zune through fiscal 2008.

        Zune isn’t the only big bet Microsoft is making in the Entertainment and Devices division. Bach also will continue to post losses on its Xbox business through fiscal 2007 (which ends on June 30, 2007), he reiterated.

        Microsoft is hoping to finally start seeing IPTV deployments in fiscal 2007, after spending substantially on IPTV pilots throughout the world. It has some serious catching up to do on the video front, especially in the personal video space currently dominated by YouTube. And Microsoft, like its partners, still has not made seamlessly connected entertainment a reality.

        When asked whether Microsoft was abandoning its PlayforSure digital-media-connectivity initiative in favor of developing its own end-to-end Zune solution, Bach said Microsoft is planning to continue to back PlaysforSure.

        “PlaysforSure continues as it is today,” he said. In fact, the Zune team “will work with the same (PlaysforSure) interfaces,” Bach said.

        He likened the PlaysforSure/Zune paradigm to the PC/Xbox console one. The two teams will continue to work in parallel, with the hope that the two different environments ultimately will work together, Bach said.

        Mary Jo
        Mary Jo

        Get the Free Newsletter!

        Subscribe to Daily Tech Insider for top news, trends & analysis

        Get the Free Newsletter!

        Subscribe to Daily Tech Insider for top news, trends & analysis

        MOST POPULAR ARTICLES

        Artificial Intelligence

        9 Best AI 3D Generators You Need...

        Sam Rinko - June 25, 2024 0
        AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
        Read more
        Cloud

        RingCentral Expands Its Collaboration Platform

        Zeus Kerravala - November 22, 2023 0
        RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
        Read more
        Artificial Intelligence

        8 Best AI Data Analytics Software &...

        Aminu Abdullahi - January 18, 2024 0
        Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
        Read more
        Latest News

        Zeus Kerravala on Networking: Multicloud, 5G, and...

        James Maguire - December 16, 2022 0
        I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
        Read more
        Video

        Datadog President Amit Agarwal on Trends in...

        James Maguire - November 11, 2022 0
        I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
        Read more
        Logo

        eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

        Facebook
        Linkedin
        RSS
        Twitter
        Youtube

        Advertisers

        Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

        Advertise with Us

        Menu

        • About eWeek
        • Subscribe to our Newsletter
        • Latest News

        Our Brands

        • Privacy Policy
        • Terms
        • About
        • Contact
        • Advertise
        • Sitemap
        • California – Do Not Sell My Information

        Property of TechnologyAdvice.
        © 2024 TechnologyAdvice. All Rights Reserved

        Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.