GameStop has refused to stock and sell the Microsoft Zune player because of the poor sales that they have been experiencing. Many consumers are now wondering if this is the end for the Zune.
Microsoft’s entry into the consumer electronics space came with a thorny channel problem. Microsoft sells the vast majority of its products through PC makers, who bundle Windows (and often Office and other software) on new PCs, and through well-established partners who specialize in selling to large organizations and businesses. Microsoft had a retail channel for selling Windows and Office upgrades and other consumer products (like Money, Encarta, and keyboards and mice), but for the most part these products were sold through computer specialty stores like CompUSA. To succeed in capturing a broader audience, Microsoft had to broaden its retail channel.
Napster has organized its resolutions for 2008 and it looks like its going to put a smile on our face as well as theirs. They are going to be creating all of the songs that they offer on their PC service and formatting them into MP3 files. All of the albums and single tracks will be exclusive to MP3 format – which can be uploaded onto any MP3 player iPod, and even the iPhone.
It isn’t very often we hear Microsoft admitting to the world that they have a problem and they need to fix it. When they started with the Zune they told consumers that it would not interfere with their PlaysForSure program. They had hoped that they would be able to combine the two and make them compatible with each other through the use of their Windows Media Technology.