Microsoft continues to pile up the billions of dollars. The company reported their second quarter earnings with a profit of $4.71 billion. Microsoft groups the Zune with the Xbox, so there is no telling exactly how much the Zune contributed to their earnings:
Sales from the division responsible for the Xbox 360 game console and the Zune digital media player edged up 3 percent to $3.06 billion. But the division swung to a profit of $357 million from a loss of $302 million last year, and Microsoft said the division is still on track to be profitable in fiscal 2008.
The company turned around a $302 million loss to a $357 million profit or a $657 million increase. Obviously, the record sales of Halo 3 had something to do with that. The good news is the Zune is selling well and Microsoft is likely seeing a nice return on investment pretty quickly.
From Zune.net.
Zune will be ‘bringing the music’ to the Winter X Games this year. Supporting ESPN in their efforts to bring the best action sport talent and related music to Winter X, Zune will be hosting onsite music including main stage acts; DJ programming and off-mountain VIP events. Join us at Zune events during Winter X, the premier winter action sports event in the world, featuring athletes from across the globe competing for medals and prize money.
The ESPN Winter Games will be held in Aspen, Colorado from 24-27 Jan 08.
Microsoft signed a $500 million deal with Viacom this week. Some details:
Among the content Viacom is offering up for Microsoft’s use are movies from Paramount Picture and TV content including Comedy Central and MTV shows. These Viacom properties will be offered in online forms and through the Xbox 360’s LIVE service, helping to make it a more viable competitor to iTunes in terms of TV and motion picture offerings.
This could get interesting if you are allowed to get MTV content for your Zune. A few months back Microsoft signed a deal to get ESPN content.
The Zune is the hottest item behind video game consoles this holiday season. From Yahoo News:
The hottest category was video games, with sales up 134 percent, said comScore. Within the video game sector the hottest product is Nintendo’s Wii. Consumers in search of the Wii hit both retailers and eBay. The online auction site saw 358 sold at an average price of $412, which is about $100 cheaper than from online retailers.
Microsoft’s Zune music player was ranked the second most popular gadget online by PriceGrabber, eBay and Shopping.com, although the sites saw differing levels of demand for the 30GB and the 80GB versions.
Here are some nice details of how the Zune stacked up against the iPod:
The Microsoft Zune beat all models in the Apple iPod line in searches this year. Interest in the Zune, has increased 246 percent in recent days and receives 13.3 percent of all inquiries in the MP3 market. The Zune offers a lower price point compared to similar players and includes a built-in FM Tuner.
Top-selling Products (online) on Black Friday
1. Nintendo Wii Console
2. Microsoft Zune 30GB Media Player - Brown
3. TomTom ONE 3rd Edition GPS
4. Activision Guitar Hero III Legends of Rock Bundle
5. Canon PowerShot SD1000 Silver Digital Camera
6. Microsoft Office 2004 Student and Teacher
7. Western Digital My Book Essential Edition External 500GB Hard Drive
8. Magellan Maestro 3100 GPS
9. Canon PowerShot SD750 Digital Camera
10. Canon EOS Regel XTi Black SLR Digital Camera
The sell out of the Zune 80 has even got the attention of the Assoiciated Press (AP):
The 80-gigabyte Zune media player Microsoft Corp. launched Tuesday has sold out across the Web, to the dismay of online shoppers and delight of the world’s largest software maker.
“Anyone know where I can get a Cabbage Patch Doll … er … I mean Zune?” asks an Amazon.com Inc. customer listed as Paul Taylor on the Web retailer’s message board for the product.
Amazon told Taylor and others that their preordered devices for Nov. 13 shipping would not be sent for 10 more days, according to the message board.
While Web retailers have 4 GB and 8 GB versions of the second-generation Zunes in stock, the 80 GB music player is not available on Amazon, Best Buy or Circuit City’s Web sites.
Microsoft said it prioritized the manufacture of the smaller Zune 4 and Zune 8 devices, and that more of the 80 GB version should be on shelves, physical and virtual, in the next 10 to 14 days.
Rumors of a manufacturing delay spread across consumer electronics blogs this week.
“I think they were already probably a little later than they would like to be, given Apple’s iPod announcement” of a new line of the market-leading devices in September, said Matt Rosoff, an analyst at the independent research group Directions on Microsoft. “They probably wanted to get anything out the door as soon as they could.”
Quite a few Zunes have “definitely shipped and sold,” and Amazon is being given a limited number each week, said Anya Waring, an Amazon spokeswoman.
Microsoft, for its part, is happy to see such a positive reaction, according to a spokesman.
So I was browsing Amazon.com to check out the Zunes and I was shocked to learn that Amazon only had only two Zune 80s left!
Only 1 left in stock–order soon (more on the way). Availability: In stock on December 14, 2007. Order it now.
They also sold out on their Zune 8s (Pink, Red and Green) and ony 3 of the Black Zune 8s left!
Only 3 left in stock–order soon.
I will upload some scans later! If you want a Black Zune 8 you better get it now! It is simply amazing that a huge online retailer would sell out of their inventory of Microsoft Zunes through pre-orders and less than 24 hours of the first day of sales. That is what happens when you offer free shipping and no tax on the sale!
Red Herring is reporting that Microsoft is in talks to acquire Musiwave who operates the music download stores for mobile operators Orange UK, T-Mobile, and Leap Wireless.
In Microsoft’s news release, Pieter Knook, senior vice president of mobile communications at Microsoft, said the acquisition would let the company explore “untapped†areas and bring it “key assets,†combining Musiwave’s relationships with music labels, device makers, and mobile operators with its own Zune devices and Windows Mobile operating system.
Here are some details from the Openwave Press release.
Microsoft Corp. today announced it has entered into an exclusivity agreement around its intention to acquire Musiwave SA, an Openwave company and a leading provider of mobile music entertainment services to operators and media companies. The acquisition would bring Musiwave’s relationships with music labels, device makers and mobile operators that deliver digital entertainment to consumers, together with Microsoft’s Connected Entertainment technologies and services, including Windows Mobile, Zune, MSN and Windows Live. Should the transaction proceed, Musiwave would continue to operate out of its current headquarters in Paris.
“Microsoft and Musiwave share the same philosophy in working with hardware and mobile operator partners to deliver great experiences for mobile device users,” said Pieter Knook, senior vice president of the Mobile Communications Business at Microsoft. “Bringing Musiwave on board would provide an opportunity for Microsoft to explore new areas in the mobile space previously untapped, and to showcase the power of software plus services. This contemplated acquisition reflects Microsoft’s recognition of the software and technology expertise in Europe.”
“Musiwave would bring key assets to us as we continue to bring our vision of Connected Entertainment to life,” said J Allard, corporate vice president in charge of music at Microsoft. “Its software expertise and extensive relationships with operators and music companies would help us take our products and services to the next level, giving people access to whatever entertainment content they want, whenever and however they want it.”
Looks like the future is looking up for the Zune and getting music on the go!
