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Microsoft tries cutting Zune HD prices to fight rivals

updated 02:55 pm EST, Sun February 7, 2010

Zune HD now 20 to 30 dollars cheaper

Microsoft in the past few days has quietly cut prices on the Zune HD through an at least temporary promo. The touchscreen media player now costs $190 for a 16GB model at Amazon, or $32 less than the original price; the 32GB model has dropped by a similar amount to $250.

Microsoft's own store has also dropped its prices by a lesser amount, to $200 for a 16GB Zune HD and $270 for a 32GB edition. Walmart and other retailers are also closely matching Amazon's prices.

Officially, Microsoft has only said that the new prices are part of "sales" and implied that they may be temporary, although it hasn't said if or when the promo will end. The cuts, however, give it about twice as much capacity at the same price as an iPod touch or else a significant discount for similar capacity.

They price drops come as an attempt to spur sales post-holidays and suggest sales have cooled significantly since the September release. Microsoft has implemented such cuts in the past when Zune players weren't faring particularly strongly and suggests as a result that the effective restart of the Zune line has had little direct impact on the company's ability to increase its market share. Historically, Microsoft has had about 2 percent of the media player market while Apple has had over 70 percent.

 
Previous Comments

Try cereal boxes

02/07, 03:54pm reply

Maybe.

Paul Huang

Dedicated MacNNer

Joined: Sep 1999

+9

Without an ecosystem the Zune HD will never

02/07, 04:11pm reply

have high sales. It seems to be a pretty good device in terms of hardware, but that's about it.

iphonerulez

Fresh-Faced Recruit

Joined: Nov 2008

+5

Do what RIM does

02/07, 05:16pm reply

Buy one get one POS free. Then brag about the millions that were sold. Well in this case, the dozens or so sold! LOL

slapppy

Fresh-Faced Recruit

Joined: Mar 2008

+6

Cereal boxes are excellent distribution channels

02/07, 05:17pm reply

Make a product enticing and regardless of price, people will buy it.

Make an odious product and it will move like bricks.

Wait, Volvos were like bricks at one time and they still sold well.

Paul Huang

Dedicated MacNNer

Joined: Sep 1999

-1

wait a little longer

02/07, 08:39pm reply

and one will be free with a copy of Windows 7

George3

Fresh-Faced Recruit

Joined: Jul 2008

+8

LOLLLL

02/07, 11:52pm reply

Monkey see, Money do, Money Fail (again).

jarod

Fresh-Faced Recruit

Joined: Apr 2005

+8

A Cheaper t***

02/08, 09:34am reply

A cheaper t*** is generally not appealing by itself. However, if you can do it in bulk, you may generate interest from the farming community.

Foe Hammer

Fresh-Faced Recruit

Joined: Feb 2005

+4

Censor-y Overload

02/08, 11:57am reply

OK, what's up with the MacNN censor?

How come a lump of post-digested matter that you can notoriously not polish is converted to t*** yet we get Jobs: Google's "Don't Be Evil" motto is "bullsh*t"???

Foe Hammer

Fresh-Faced Recruit

Joined: Feb 2005

+3

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