14 DAY TRIAL // Microsoft's Zune digital media player could end up being a miscarriage on the European market, as far as a 2007 launch is concerned. Zune was made available to the U.S. General public on November 14 2006 and although it had been praised as an iPod killer, Microsoft delivered it with a more modest trajectory. A modest trajectory, not short of a mediocre performance. While Apple pushed in excess of 10,549,000 iPods during a single quarter, from January 2007 until the end of March, Microsoft only aims at selling one million Zune devices by the summer of this year. The Redmond Company has also focused exclusively on the U.S. Market, but initial speculations pointed out to the end of 2007 as a valid availability date for Zune in Europe.
Microsoft Chief Executive Officer Steve Ballmer has however failed to confirm even remotely a 2007 launch in Europe for Zune. But he did confirm that Zune has been a financial black hole and hinted that until the business built around the device will become profitable, additional markets will remain off limits. Moreover, Ballmer refused to reveal any details, however scarce related to Zune's availability in Europe, as cited by Zune Insider.
"Our primary goal was to get into market, offer some innovation and do some learning. The US is always an easy place to practice, because it is our home market. Over time, we will have various versions of Zune," Ballmer said. "And, it is obvious that we need to have new services, not just an Internet music store. So far, we have lost money in this business because of our investments. That is why we decided not to enter new markets so far. It will only pay off after we have reached some of the goals outlined. When this will be the case, I cannot tell you today."
It is clear that Microsoft is trying to get a feeling of the market before it will further venture with Zune in Europe. The Redmond Company's digital media player and the Zune Marketplace online service have failed to be a hit with consumers. Microsoft has confirmed that it is still on track to sell 1 million Zune players by June 30, 2007, but the company needs to build a solid business and train customer appeal before attempting to cross over the pond.
"We've said all along that focus and delivering a unique and high-quality experience is important to us and that we will not expand the device family or our geographical footprint until we are positive that we can provide the best experience from the start. Our plan is stated in terms of years - we're in this game for the long haul and we're solidly on track to meet our goal for this fiscal year (1M unit sell-in) and are exactly where we need to be with the business," explained Cesar Menendez, a member of the Zune project.