Who Cares?

Apple has sold 58 million iPods since 2001. Fifty-Eight Million. Does the industry actually need another digital music player? Hell no. Does the industry need another player from Microsoft?? Double Hell no!!

In a recent confirmation of the project, Microsoft has been doing a lot of chest-pounding stating that they solicited Robbie Bach, President of Microsoft Entertainment, who was responsible for developing the XBox, to develop the Zune Project. Ah, so what?? The XBox is a money-losing endeavor with only one "must have" game. Any other company would have folded the operation, but Microsoft, with their deep pockets, doesn't want to lose industry face. And besides, it's a nice write off.

Halo's Master-Chef is the only glue that holds the XBox gaming system together

What's even more ironic is that Microsoft is just going to try and clone the "Pod Experience" -- instead of innovating. And believe me, the addition of Wi-Fi is not an innovation. Other manufacturers already have Wi-Fi digital players in the marketplace and Apple's new crop of iPods will reportedly have that function as well. So what's the big takeaway from this? Microsoft's realization is that Apple's core Soup-to-Nuts, Control the entire user experience, own the complete vertical, philosophy works.

So why is Microsoft getting into the iPod game? Because Apple's philosophy is the key for getting into the retail Holy Grail: home-entertainment. Apple's forging ahead into the video realm has put the "fear" into Microsoft. Apple has sold around 35 million videos since last Christmas. Thirty-Five million. And they sold them through the seamless iTunes experience. Getting a video onto your iPod? No hassles, no DRM hoops to jump through, No drama. You buy a TV show from iTunes, download it and then watch it.
"Crap!" Microsoft exclaims, if they can do this with music and video "what's next??!"

Precisely. And what's next for Apple is getting into cellular phones and other consumer electronics whose overall user experience stinks. The iPhone has been bantered about for the last few years, and if any of the recent buzz is a factor, we could see an Apple cell phone in the next few months. And let me tell you, if the experience is half as seamless as iTunes+iPod, then the public will have a field day. Ask the common user about what happens when they buy a new cell phone? The majority of them complain about the "transfer" -- taking all their contacts and retyping them one by one into the new phone. And what about the games they purchased? Gone. The ringtones? Gone. Well, if Apple gets into this market you know that everything will be thoughtful, user-friendly, integrated, and, well, it will work as a whole system.

Microsoft has banned the Staples' Easy Button from their headquarters.

And home entertainment? The public would love to see an Apple set-top box. Download a TV Show into your Apple iTiVo, watch it at home or during your commute on your video iPod. Sound easy? It should be! The biggest problem for Microsoft is that they don't have an Easy Button. They never did... In fact, the word "Easy" is not in the Microsoft corporate dictionary.
But the 58 million iPod sales has suddenly gotten their attention. Microsoft's "License To Everyone" philosophy just doesn't work in consumer electronics. And this moment of clarity has spurred them into action. Microsoft feels that if they can successfully develop Zune, then they will be better equipped to address the consumer, in the consumer electronics industry. But are they too late? And does the public really care?

The Future: So why is Microsoft really developing the Zune? So they can attempt to duplicate the integrated, seamless iPod experience and then implement that philosophy into the rest of their products. Suddenly, Easy makes good business sense.

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