In zipping through the company's 10-Q filing, Microsoft reveals that Zune platform revenue decreased $100 million, or roughly 54%, which if you're keeping track of the Entertainment and Device Division (EAD) represents a staggering 60% loss to the division's overall revenues (which include the Xbox 360 and PC game revenue). Despite a recent software update and significantly discounted hardware, the Zune has failed to compete in any significant way with Apple's iPod family, which saw sales rise 3% in the same time frame. Since its launch the Zune family has sold an embarrassing 3 million units, while Apple has sold an astonishing 200+ million of their various players.
As Microsoft has announced its first round of layoffs in recent memory alongside plans to shutter several development houses, it may be time for Redmond to realize the economic realities of the situation and divert funds for this money-pit elsewhere. With hard-numbers like these, it'll be difficult to keep blaming the sagging economy for bad business decisions. Personally, I'd rather see the Zune cut loose than more people lose their jobs.
blog comments powered by Disqus