Will we see a Microsoft xPod?
Tags: Microsoft, Music, Apple, Marketing
Today's Wall Street Journal has a prominent story on Microsoft tapping the leader of its XBox division to take over its music initiative as well. An analyst had a nice sound bite on Microsoft's failure to date in digital music.
Some of the licensees of Microsoft's music technology have complained that Microsoft couldn't explain why consumers should prefer its technology. So not only is the company digging itself into a hole by overwhelming consumers with the tyranny of too many choices in music players and music stores, it isn't marketing its strategy well either.
Of course, the choice of Mr. Bach implies that this might change. He did champion XBox as a single platform instead of an ecosystem play at Microsoft, and has had limited success with that strategy (if one can call losing more than $1 billion to gain the #2 spot in gaming a success). But Apple has a nearly four year head start in building brand and awareness for its iPod. Even if Mr. Bach has a blank check in hand to build this business, it will be a long, uphill battle to overcome an 80% marketshare lead. Unless Mr. Bach can come up with a clear strategy, killer differentiation, amazing products, and great marketing, this will be another billion-dollar expense line for Microsoft with little to show for it.
Today's Wall Street Journal has a prominent story on Microsoft tapping the leader of its XBox division to take over its music initiative as well. An analyst had a nice sound bite on Microsoft's failure to date in digital music.
As much as Microsoft is claiming that it's giving choice, the customer has chosen," said Michael Gartenberg, an analyst at Jupiter Research. "Offering 150 players doesn't seem to add up to one iPod in the mind of the consumer right now."
Some of the licensees of Microsoft's music technology have complained that Microsoft couldn't explain why consumers should prefer its technology. So not only is the company digging itself into a hole by overwhelming consumers with the tyranny of too many choices in music players and music stores, it isn't marketing its strategy well either.
Of course, the choice of Mr. Bach implies that this might change. He did champion XBox as a single platform instead of an ecosystem play at Microsoft, and has had limited success with that strategy (if one can call losing more than $1 billion to gain the #2 spot in gaming a success). But Apple has a nearly four year head start in building brand and awareness for its iPod. Even if Mr. Bach has a blank check in hand to build this business, it will be a long, uphill battle to overcome an 80% marketshare lead. Unless Mr. Bach can come up with a clear strategy, killer differentiation, amazing products, and great marketing, this will be another billion-dollar expense line for Microsoft with little to show for it.
posted by Carl Howe at
8:55 AM
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