Microsoft to Release iPod Competitor
By now you might have heard the rumors and seen the unconfirmed pictures of Microsoft’s alleged iPod competitor. I say iPod competitor instead of iPod killer because that term has officially been used to the point of absurdity. So when I talk about this device it is with the firm belief that even if this device makes it out of the pipe-dream phase and into actually-on-a-store-shelf phase, it still won’t do any killing, iPod or otherwise.
When I read this story I couldn’t help but ask why. Why would Microsoft even bother trying to produce a device like this? With the exception of the Xbox they have no experience designing hardware. And even the Xbox, while nice, isn’t exactly a stunning piece of industrial design. It is a good device, but not an exceptional one. And exceptional is what Microsoft would have to create if they wanted to try and compete with the iPod.
So this brings us back to why? Why bother? Why not just pour their money into something else like ultra portable PCs. Well, maybe not. But how about something else? I mean, what with the solid success that Origami was why not shoot for something easier than dethroning the iPod? Like, why not invest in General Motors and see if they can get them to produce cars that are cheaper and more reliable than Toyotas? I mean, if you want a challenge, hell, aim for the freaking stars, right?
After all, Microsoft is a software company first, a services company second, a gaming company third, an internet company fourth and now, I suppose, a portable electronics company fifth. From a product-stand point they don’t really excel at any one of those, but hey, why should that matter, right?
I think Microsoft should go for it. I hope they throw several million at this soon to be doomed business venture. And why do I want them to waste their money? Partly because I enjoy it when they fail miserably at something but mostly because I want Apple to be spurred on to create more cool products. And, of course, when ever Microsoft releases another piece of crap it gives us bloggers something to talk about.
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Valid point, why do they bother? I don’t think I’ve seen the Origami on sale anyway in the U.K and I’ve seen virtually nothing in the news, technology websites included, about it. To me it seems as though Microsoft are trying desperately to be creative and innovative but then failing miserably at it.
I think they should really just stick to Gaming, Software and possibly the Internet side of things.
[snark] A wireless capability would allow a M$FT music player to download viruses directly, and then send them right to your PC without any intervening anti-virus filter. This new product will be a hacker and spammer’s dream machine. [/snark]
They weren’t a gaming company either, until they were. And I’m sure the Stoups of the world were cheering for and expecting their failure at that as well. Perhaps less so, but only because Apple doesn’t (yet) have a game box.
Personally, I like competition, and I would love to see someone really come out with a product with more features for less money than the iPod. At the very least, it would encourage Apple and others to push their products. I don’t know if that’s Microsoft and I don’t know that it won’t be.
They’ve got a decidedly mixed record overall. But the X-box 360 is awesome by any measure (I have one and I’ve been enjoying it quite a bit). So it’s a question of which designers and engineers they put on it.
Also, I like the incentive they’re offering of re-downloading all of your iTunes purchases via another service that’s PFS compatible. It would certainly make the transition a lot easier.
Why would Microsoft even bother trying to produce a device like this? -JRS
Because they are clueless and paranoid, that’s why.
I have covered this “rumour” in my blog so I won’t spend too much time here.
The executive ranks are so close to nervous breakdown from the iPod’s dominance that they think it might someday topple theirs. That is why M$ is scrambling all their massive resources to attack the iPod ecosystem.
M$ is at a defensive position for the first time in their 30 year history that being an underdog is not much fun (except Apple). They are inherently a bully since Bill’s and Balmer’s early days that their corporate image that Bill and those guys instilled on the rank and file does not fit the “underdog” definition.
Sure let M$ come up with a well-designed competitor and see how it will stack up with then new crop of iPods that are sure to appear. Steve and the gang has this market locked down and he knows he’s holding the Ace of Spades this time around. Do you think he will drop it again? We’ll just see ‘coz only time will tell, as the saying goes. Steve’s got smart from his past failures and he will use that experience to quell any device/technology that M$ or others will come up with.
Microsoft doesn’t care one bit about the MP3 player market. But it cares a great deal about the WMA and WMV market and without a viable audio/video player why would anyone care about using Microsoft’s WMA and WMV tools?
Being a software company assumes someone is producing hardware that people are buying. Without that, the software is superfluous.
Microsoft doesn’t care one bit about the MP3 player market -dwb
Really. If your speculation is correct, why would they produce this iPod “competitor”?
Is it because they are feeling warm and threatened by all this activity going on around them bypassing their great technologies in WM?
M$‘s core competencies are in software and building the framework for WM - audio/video codecs, DRM, etc. fits this exactly. The problem now is M$ is having a difficult time convincing consumers that its technologies are better than what’s out there - namely Apple’s.
It is not lack of effort on M$‘s part. They just need to wake up and smell the capuccino frothing. License Fairplay and be done with it! Better yet, come out with this rumoured device and I am going to watch for myself a bloody beaten M$ licensing Fairplay..Heh, heh. That would be better, indeed.
Wait—I thought Apple was refusing to license Fairplay to well, anyone? How can Microsoft license Fairplay if Apple’s not allowing it then?
Oh, and Microsoft *does* make some good hardware. Their keyboards are good (off-tangent: I read somewhere that Apple refused to license their logo for the MS Mac keyboard, and MS was forced to use a clover symbol), and their mice are excellent.
Wait—I thought Apple was refusing to license Fairplay to well, anyone? How can Microsoft license Fairplay if Apple’s not allowing it then?
Yes, Apple is refusing to license Fairplay (a policy numerous Apple-apologists are not only aware of but have defended), which would render any sort of solution that assumes that Microsoft can (for example: “License Fairplay and be done with it!) a bit convenient ignorance.
Oh, and Microsoft *does* make some good hardware.
You’d have a good point if Stoups or any other Microsoft haters were interested in good points.
...Wait—I thought Apple was refusing to license Fairplay to well, anyone? How can Microsoft license Fairplay if Apple’s not allowing it then? -mojo
Right now is correct, Apple is not licensing. But the time after this gadget is announced when M$‘s allies become arch-enemies (you know what I’m talking about - the Sonys and Samsungs and Creatives) and license Fairplay. Apple will be too smart not to allow these guys have a taste of victory.
M$‘s impending vertical model will not allow these same companies in the WM technologies. If allowed, they will be competing with M$ herself and what is that leave the Sonys, the Samsungs, the Creatives??? In no man’s land, that’s where! Do you think these smart companies will be clueless not to go to Apple’s side and beg for forgiveness?
That will be the day for me, indeed. That’s when the Bbx will feel the pain and suffering of supporting M$ to hell. Hah, hah, hah! “Apple apologist”, my rear end…
And yes, M$ can indeed make crafty hardware, mojo. How about migrating those folks over to the OS side then perhaps Vista will be as snappy and arrive on time…
Apple license Fairplay? I doubt it. If they do, they’ll essentially be admitting that they can’t compete one-on-one with Microsoft; also, in so doing, the iPod/iTunes integration will be broken—and I thought that was one of the reasons why the iPod was so dominant?
Think about it: they allow Sony, Samsung and Creative to play Fairplay DRM’d AACs—the iPod gets less compelling. They license Fairplay to the Napsters of their world—suddenly people can buy their music from somewhere other than iTunes. Does it all come crashing down? Maybe. Then again, maybe not. The point is, why would Apple risk cutting their own throat in this fashion?
Don’t get me wrong, I’m all for Apple licensing Fairplay—more choice is always good. But from a business perspective, it doesn’t seem to make sense.
The point is, why would Apple risk cutting their own throat in this fashion? -mojo
I admire your opinion, mojo. But to tell you the truth, your business sense needs some sharpening.
When the time comes that Apple licenses Fairplay and allow the world to use the DRM technology in media devices, the iPod’s market share is already approaching saturation. Like M$‘s Windows market share of >90% it is almost impossible to grab every 1% crumb of the pie. Therefore, to allow further expansion of revenue (this is what analysts and Wall Street is particularly interested in) Apple will have no choice but to license Fairplay.
Whether they only license to hardware devices (Sony, Samsung, Creative, etc) is up in the air. We are not talking about that as yet. But, you do have a point in the Napster licensing. I would think that Steve will hold off on licensing to possible iTMS competitor just yet. Hardware licensing is a different matter and it should be supportive of the overall objective of expanding the iPod market.
Why? The Sonys, Samsungs, and the Creatives, will not be getting off for FREE. Apple will license Fairplay at a very fair price (meaning steep!) for a per unit sale. How about $50-$100 per unit sale sound to you? That would be a $50 to $100 mils of revenue on a million unit sold. And that is pure revenue because Apple does not do a damn thing to generate that $$$! Get it yet? M$ got FAT and happy this way. Getting inept is another story to be told another day…
They license Fairplay to the Napsters of their world—suddenly people can buy their music from somewhere other than iTunes. Does it all come crashing down? Maybe.
If it all comes crashing down, then that would certainly illustrate decisively that Apple is artificially propping up its stranglehold on the market with anti-competitive practices. This would not be helped at all if Microsoft released a Fairplay player that undercut the iPod.
If it doesn’t come crashing down, and Apple retains its dominance (a solid possibility), then there’s no particular reason for Apple NOT to license Fairplay.
Either way, they should license Fairplay, which would mean actually Playing Fair (ironic, no?) and seeing if the competition really can compete.
$50-$100 per unit to license Fairplay? You’re kidding, right? So at least 50% of the retail cost of each unit? No way is anyone going to cut their *own* throat to do that. No way Jobs is that stupid. *shakes head*
I may not have that sharp of a “business sense” as you put it, but I *do* have some common sense.
$50-$100 per unit to license Fairplay? You’re kidding, right? -mojo
They want Fairplay, they would have to pay Steve’s asking price. I don’t have the greatest biz acumen, that spot is rightfully taken by the Steve. And Steve will get what he wants.
This would not be helped at all if Microsoft released a Fairplay player that undercut the iPod. -Bbx
This is another reason for the steep licensing fee. If M$ has any funny ideas like dumping a zillion of these babies for almost zilch, then they would have to eat a gazillion greenies in the red column. How ‘bout reporting to Wall Street and your investors that to compete fairly with Apple they have to lose, oh $2 bln/quarter. Don’t ask me how I came up with that number because it’s all hypothetical. Let’s just say that it is.
Apple is artificially propping up its stranglehold on the market with anti-competitive practices. -Bbx
Another unproven assumption with no factual data from no other than Bbx the Mac spy. Beeb, have you taken up my advice to get some college course in imaginative and creative thinking? Do not comment if you can’t make your own creative opinion OK? You are merely a parasitical commentor riding someone’s genuine thoughts. Make your own next time.
I$50-$100 per unit to license Fairplay? You’re kidding, right?...No way Jobs is that stupid.
I agree that they wouldn’t do it, but not because Jobs wouldn’t WANT to. Apple recently bumped their licensing fee for iPod accessory manufacturers from 2% to 10%. You think anyone’s going to go along with that if Apple didn’t dominate the market?
Such is the reward of a monopoly power. The accessories makers HAVE to pay it because there aren’t any other devices worth marketing to. And Apple knows their reliably pliant cult followers will heartily provide plenty of apologist excuses for why Apple is entitled to ring out every single penny from customers and manufacturers while at the same time they mindlessly attack Microsoft for similar monopolistic abuses. Heck, it happens on this site every day.