Awesome news!!!

Yes! Way to go, I like that aggressive price drop.

Sweet! Does this mean a New Zune soon?

Wait, does this have to do with the New iPod commning out tomorrow? *winks*

You know, whenever I hear of an aggressive price drop, it immediately make me think a new product is about to be launched and the manufacturer is trying to clear out inventory beforehand. (i.e. Apple giving away free iPods with a new computer purchase in the Fall.)

Call me crazy!

Don't playa hate! Speculate!

:)

thats cool. i, for one, am impressed with the hardware. the device, though bulky, is increadibly easy to use and in the 2nd gen zune wouldn't change a thing, same for the ui. Now the part that is irrating me; the fact that the zune seems to be completly abandoned by microsoft. only to 1.4 in almost a year, not good. wifi restrictions need to be lifted to make "the social" work, add video to zm. in short the zune is the only good thing about owning a zune.

Oh, and by clear out inventory beforehand, I mean clear out Zune 1 inventory before Zune 2 arrives - not iPod stuff. You know it's true. You guys have already admitted that ZUne will have a line-up refresh later this year.

Word up! (Do people still use that phrase?)

But... I just bought my Zune last week...

*cries*

I'm guessing this has something to do with Apple's iPod press conference tomorrow?  Maybe, maybe not.  But anyways, $200 sounds like a pretty good value!

I'm so glad I bought my Zune back in May when Circuit City was selling it for $199 but Staples still had it for $249.  Staples did their 110% price match thing, and I've loved the Zune since then.

A week later I got my wife the pink Zune when Circuit City had it online for $199 for in-store for $249.  They price matched it as well. :)

So... I'm real glad people are going to more easily be able to get it for a great price.

Sweet!!!!! Will they let me trade my RETARDED IPOOP NANO for the one, the only zune?

You guys got a B-. Come on step it up.

http://www.cliczune.com/2007/09/microsoft-v-p-z.html

Ah, going to match the big Apple event tomorrow? Clearing out stock? Suspicious, ah yes, suspicious. /mystery

Filed under: Portable Audio Microsoft is quite clear on the Zune Insider blog that this price drop has

The Zune officially got a price drop today, now retailing for only $199 and what a shock I still don’t...

The Zune officially got a price drop today , now retailing for only $199 and what a shock I still don

Why are the Zune team always seem to be reacting? When Apple released a new iPod last year, you were forced to lower the price you wanted for the Zune ($250). Should have been $199 on initial release, could have made a bigger dent in the iPod at $250, and a bigger (possitive) impression. Now that Apple is releasing a new iPod you lower the price again?

BTW: If the Zune was selling like hot cakes, there would be no need to lower the price, so the excuse about you having it planed for months don't cut it! Unless you really had low expectation

Aw man Cesar, I was gonna get me girl a pink Zune for her Birthday (August 21) but I only had $180 and some $40 of my birthday money. (Radioshack had it for $200 but they didnt have pink). Well, you're never too late for a late birthday present. Except I spend that money on a Wii. =/

  Most of these comments sound like they were composed by the same person.

  Past that though, there aren't enough people with a Zune to be building anything exciting for. If M$ has to mark them down to sell them, I would have to save finding this situation "cool" for down the road. Best of luck with your investment.

"something in the books for months"

The timing seems awfully suspicious considering it's the EXACT SAME DAY APPLE ANNOUNCES NEW IPODS!!

I think it's because the 30gb iPods will drop to $199 with the introduction of the new iPods. Am I right? Oh Caesar, your poker face is showing.

This is an obvious preemptive action to combat the massive publicity to be generated tomorrow by Apple. Be honest guys...you don't lower the price of a hot-selling product. You keep it the same and add more features.

Dave: Saving money is not "uncool". Just because Apple never cuts prices doesn't mean MS shouldn't. Whatever the motive, I applaud a price cut.

Tomorrow is going to be very interesting.  I think Apple is going to throw a knockout punch that will render this price cut and the latest batch of Zunes useless...

Find out what Social News Sites are discussing this post over at metagg.com

Cool, I can use the extra money I save by not buying a Zune to buy a new iPod! ;-)

Cesar, whats up with the spam post approval?

Hey Cesar: I think its great that the Zune is pushing competitively in the pricing war, but do you guys honestly believe thats all it will take to really break out of the current status quo? Or is Microsoft satisfied to just push a few more units?

What I've found extremely disappointing has been Microsoft's [lack of] participation with the community around the Zune. There are some MS teams with great blogs out there and excellent community outreach [notably the XDA/.net team and msjobsblog], but everything Zune related is really, really lacking.

Sure ZuneInsider is great for what it does - music centered information - but has MS really forgotten the whole "Developers, developers, developers" side of things? Its really sad that Microsoft hasn't cared enough to truly back the Zune all the way - with more software features, firmware updates, answers to the community's requests, anything substantial.

Wake up... your customers don't see any worthwhile distinguishing features in the Zune over its competitors [oh wow utterly useless gimmicky locked WiFi - well done]. The teams of dedicated, enthusiastic, early adopters that were hoping for much more have been let down. The Zune's best hopes of having any sort of community-driven grassroots marketing have been completely dashed. I don't think theres a single person left deluded enough to think Microsoft gives a damn about the Zune, there definitely haven't been any developments coming from you guys to convince us otherwise.

I bought a Zune because of the excellent hardware and the promises of having a company like Microsoft aggressively backing it to push through the market. Suffice it to say that hasn't happened. Consider this customer pissed off and extremely disappointed :(

Y'know, I've always loved my Zune. I bought it about a month after launch, never had any issues. The interface is cool and the screen is awesome.

As a matter of fact, the interface and screen was more than enough to stop me from even considering other digital audio/video players.

Case in point: http://fykn.net/other/zune1.jpg and http://fykn.net/other/zune2.jpg

Beautiful stuff.

I'll be picking up a second Zune soon and at $199, the Zune just got a lot more sweeter.

Zune Insider : Price Drop. Some of you may have already heard, but tomorrow we’re dropping the suggested retail price for Zune to $199. It’s part of the normal product lifecycle, something we’ve had on the books for months. We

this price is drop is definitely in preparation for the new ipods.... microsoft expects that the new ipod will lead to the extinction of zune. survival of the fittest. hail apple!!!

'm not considering to get a Zune in the near future but this is great news and good sign to get more buyer. Let's the price war begin.

Microsoft is dropping the sugguested retail price on Zunes . If you are considering getting a Zune hold

Pingback

Zune Prices Fell

nice, now all you have to do is open it up to more formats like creative has - and it would be worth considering.

I like this move. Guerrilla tactics indeed.

Go Zune!

Zune should have been at this price all along.  It is a great device (I like mine) but it really needed something like this to close the deal when people are looking at the Zune and iPod side by side on store shelves.  It is too late now because next to the new iPod the current Zune will probably look old and busted.

Looking back, I do feel a bit mislead by Microsoft.  Even in the product brochure there is a paragraph talking about how the Zune will evolve with updates.  We've seen virtually nothing in this regard.

Leverage what the zune is well known for:

- WiFi

- Social

- New Music & content

- Experience

And add:

- Innovation

- Design

The Ipod is a MP3 player known for:

- Design

- Fashion

- Trendy

- Video

You should not compete on those grounds.

Cool and thanks for letting us know.

$199??... I bought my Zune 2 weeks ago in theWoot-off at $149... Like the unit so far, although NO ONE, not iTunes or MS can touch the simplicity and excellence I had in the software of the Creative Labs Nomad 2...

Hey friends, I love the comments and conversation, I'd just like to remind everybody of the comment policy: no trolling, swearing, or spam :)

http://zuneinsider.com/archive/2006/11/27/if-your-comment-got-deleted-here-s-why.aspx

C, may I add a bit more on the "speculate" front? (just delete this if it gets annoying, i won't mind)

http://crunchgear.com/2007/09/04/zune-2-headphones-details/

If that's true (especially the cloth wrapped buds), then it's a pretty darn classy move!

Yeah, I know you can't comment... :)

Good luck Steve Jobs getting your message out now -- pwned!

Mazola, you always crack me up. Damien, you too man.

The hour is approaching where the current leader reveals its cards.  I'm thinking new iPods will mainly sport the CoverFlow interface, improved video output and wifi capabilities.  Since Zune was first with wifi, it will be very unfortunate if Apple beats Zune to the punch with significant capabilities.  At all costs, Zune team needs to make sure Zune retains its *leadership* position when it comes to wifi capabilities.

Microsoft’s Cesar Menendez says that tomorrow the suggested retail price of Microsoft’s Zune personal media players will be cut to $199. ...

You guys need another price drop!! 80GB Ipod for $250.

Wow yet again i am dissapointed with my zune. the new ipod touch has wifi with a web browser. way to go microsoft. now im extremely mad.

Oh, and a Wi-Fi Music Store too.

Good job guys. You had a 10-month head start. What went wrong? You had huge leverage.

It's just sad that Microsoft got such a potentially good piece of hardware into the market, and spent almost a year doing noooooooooothing, as if they were just parked by the side of the road waiting for Apple to zoom past, which they just did quite dramatically.

Won't get stung by promises of firmware updates ever again, so i guess at least it's a learning experience.

it makes me think of selling my zune and buying an ipod touch because of the amazing wifi capabilities. web browser, wifi music store, amazing battery life. i love my zune to death but now its obsolete and its not unique anymore. great. what do i have to look forward to my zune for?

Wow, zune, im preety sure its gonna be way to hard to go after ipod now.  Its just so advanced anymore.  I love my zune to death, but man....

yea Espioz a 10month head start down the tube. and now for no reason at all i cant sign into marketplace and the only thing left support told me i could do is format and reinstall windows xp

Not just wi-fi, but browsing with the same safari as on the iPhone, YouTube videos, and  

you can buy songs directly on the iPhone from iTunes.

Squirting just seems a bit underwhelming (even if you can find someone else with a Zune).

I agree with last couple of posts on this. You had a chance to totally blow us away, yet here goes Apple plowing through feature after feature after feature - and every single one should have been first on the Zune.

Yeah I gotta agree with I Want A Zune 2 there.  With an 80GB iPod at $250 it makes the Zune seem seriously lacking at the $199 price point.

It's kind of funny here.  MS being a software company and all it's hard to believe that, IMO of course, the best part of Zune is the hardware.  It doesn't seem to have been fully realized on the client side and the device OS is, while easy to use, lacking in anything but the most simplistic get the job done features.

I really like my Zune and will continue to use it but it really seems after Apple releases this latest generation of iPods that MS is at least two generations behind them and losing ground.

Wow, you guys had the jump on WiFi, we complained about the lack of features and guess what, Apple beat you to it!

Destroyed my faith in you MS. Guess I'll be buying a new Mac instead of a Vista.

OMG

I want a Ipod touch

OMG

Zune team keep your price drop

Any comment on what just happened Cesar?

But guys maybe we will get the clock feature we have been wanting!  Yeah, to tell the time, what a world!

While the new IPOD Touch does look cool it's still pretty high in price for only 16 gigs.  I still have faith that Microsoft will add some killer features to the existing Zune to make us early adopters happy.  If not...well...I guess I'll still enjoy my Zune as much as I have since day one...and I still love the "all you can eat" Marketplace Pass.  

Although a update to the Zune firmware would be sweet...oh so sweet....

-Still a very happy Zune user

It's a disgrace that Zune is being pwned on the Wi-Fi front like this, when they were first out of the gate with it.

Iphone price cut, must be soft demand, right?  Or does that only apply to the Zune, Ishan?

Quote:Ishan Bhattacharya

This is an obvious preemptive action to combat the massive publicity to be generated tomorrow by Apple. Be honest guys...you don't lower the price of a hot-selling product. You keep it the same and add more features.

http://www.engadget.com/2007/09/05/steve-jobs-live-apples-the-beat-goes-on-special-event/

Cesar, Zune,

What happened?  B-?  You had better have good answers to the ipod wifi bomb that dropped today with the itunes wifi store.  

I love my zune, but man...  

Someone just asked me 2 days ago, iPod or Zune?  That's a pretty tough argument now...  no FM tuner now?  that's it?  

And 8GB iPhone for $399 A $200 price drop!  Zune only dropped $50.

Time for a hardware/software refresh and some new features.  Yesterday!

I think the whole zune community feels totally let down.  We begged for months to do simple things, add simple updates to make the zune better.  All we ever heard were, tour, nmf, new colors, buses, its not what we want.  Those of us who bought the zune, beleived it would suceed.  We were wrong

in less than an hour and a half apple just stomped,crushed, ran over and burned my zune

I have a feeling, and this is just my opinion, that Toshiba and Microsoft didn't part on such good terms in regards to no using Toshiba to create the Zune 2.  Therefore all the support Microsoft was getting from Toshiba for software/hardware development on the Zune 1 project went bye bye.  Again this is just my opinion.  

Also, lots of bad sentiments toward the Zune from a Zune user base.  Cesar, Microsoft, you know this is not good.  We deserve an explanation on what went wrong here.  How about blowing us out of the water at 3pm ET with an announcement about Zune Video Marketplace or Zune Wi-Fi Marketplace.  I know, Zune doesn't make announcements.  My question is, why not!!!

Microsoft, there are some opportunities to exploit the latest iPod weaknesses.

Shuffle - We all know that Zune needs more form factors for budget conscious consumers.  We don't know much about the rumor'd Zune Sleeve but if it is a SD card type device then it might offer conveniences over Shuffle.  Plug into your Windows Mobile phone?

Nano - This is an area Microsoft can really hurt Apple.  If Zune nano includes wifi with real functionality and price, storage, content and battery life to match...Zune stands make up some ground.

Classic - Some might be inclined to say Microsoft needs to match storage and price.  I think its more important for Zune to get real wifi capabilities, streaming, smaller footprint and better battery life.

Touch - This is more troublesome to Microsoft long term.  It is bring OS X to the masses.  Microsoft has no equivalent and has pretty much gotten rid of PocketPC.  Not to mention there is no Zune software to run on Windows Mobile today???!!!

With iPhone price reduction to $399, the Starbucks deal and new Wifi iTunes... Zune is further behind then ever.  The Zune team should be embarrassed that Apple has beat it to the punch in delivering a Wifi download store.  Zune team, times up..time to show us what you've come up with.

Yeah Brandon, if they can just find some way to push the boundaries of technology and get us that clock... that'll stop the apple fanboys laughing..... :)

You can see the mac vs pc ad now - iPod: I have a touch screen, a web browser, a wireless store and a huge screen. What about you Zune? Zune: I know what time it is... oh hang on, I might do soon.

madbikeskilz yes we were very wrong. i am more than let down. im crushed, and sick of tour buses, cakes, and nmf.

"The Zune team should be embarrassed that Apple has beat it to the punch in delivering a Wifi download store."

My sentiments exactly.

Stick a fork in that Zune, he's done.

Cesar,

I don't know if you're in some sort of conference call right now or something, but even a post of "News upcoming..." or something.. let us know that you're still there.

Palm dumped the Foleo (thank goodness!) they new when to cut and run.  - on that note, We the community love our Zunes!  Give us something to talk about other than ipods!

Something Microsoft needs learn & realize...Apple is getting OS X into the hands of iPod owners.  Believe me, in the future all iPods will be running OS X !!!!

Zune price drop 20% after 1 year.

Iphone price drop 30% after TWO MONTHS!!!

Absolute porking of their customers.

I do agree sjgmoney that got stuck hard

Well I can safely say there isn't a reason to hang around here anymore. :( I was looking forward to Zune news but it seems to be limbo, and what just got announced today seems to appease me for a need for a new mp3 player.

It's not just that MS didn't use the potential of Wifi, it's the fact you havent launched in the UK yet or Europe for that matter. Apple launched their new ipods and they will be in Europe very quickly. By the time Zune comes to England, Uk it will be a very outdated product and selling for a silly price I would expect, £200 ($400).

Cesar, my advice, go back to the xbox team, the xbox360 is innovative and amazing compared to any other console out there and has pushed the enevelope so much Sony and Nintendo had to copy features! The zune in comparison lacks what the xbox team has, the experuience and the innovation to move forward, they don't seem hungry enough to want to implement basic principles into an mp3 player.

Apple has certainly raised the bar significantly. Time for the Zune to step up to the plate and significantly enhance its feature-set or be prepared to be a footnote in the history of media players.

I like my Zune. I'd rather not have it be a footnote.

All the kids will want this stuff. They sold 110 Million iPods until now. And it will be getting more and more day by day. Why you are sleeping at MS? You have XBox Live with film and tv series downloads. Why not bring that into the zune marketplace? Why no international release. Why no zune wireless store? Why no browser on zune. Why no wireless snyc? Why no podcasts? I wonder what your team is working on?

However I continue with my zune for the time being. Still hoping...

It is like Apple has been reading the requests from the Zune community, and took it seriously and delivered what many have been asking for.  I guess I am still holding out hope until after the holidays, just because that would be the soonest I would replace my current player.  

sjgmoney said:

"Zune price drop 20% after 1 year.

Iphone price drop 30% after TWO MONTHS!!!

Absolute porking of their customers."

I'll speculate as to why Apple dropped the price of the 8GB iPhone. Originally, the iPhone was available in two capacities (everything else being equal): 4GB and 8GB. The 4GB iPhone was $499, the 8GB iPhone was $599. I just don't think the 4GB was selling at all, and the 8GB wasn't selling as well as Apple would like (although they say they are on track to reach their sales goal of 1 million before the end of September.) So. Eliminate the 4GB model, and the efficiencies gained by streamlining the manufacturing lines help reduce the price of the 8GB.

I bought an 8GB on launch day. I paid $599. Does it sting that just a few months later, it's $200 cheaper? Sure. But, that's the technology industry folks. Always moving, always changing, always getting cheaper for better technology. It comes with the territory.

Oh. And the Zune got seriously spanked today. Now *that's* gotta sting.

I'm sure Microsoft has some killer stuff waiting in the wings. According to Mandy Mount, though, it won't be released until after the holidays.

I think we'll be seeing a lot of those new iPod Nanos in stockings this Christmas.

Wow that new iPod is the worst looking iPod to date, Cesar common! You gotta raise the bar! Integrate the Xbox Live Marketplace with the Zune! IT will work! Add Wireless Wifi, a browser and more pixels! YOU CAN DO IT!

There is still hope.  The Ipod Touch won't ship until Sep 28th.  We have WiFi now... Fix the capabilities soon and the Zune can still be in the running.  

Cesar whats Zune doing about this?  Please don't just roll over; come out swinging.

No doubt the Zune got spanked Zuneless, and price cuts occur all the time, but name the last product you bought that dropped 33% in two months?

Supply and demand, not enough demand = 33% price cuts.

Now before I get accused of being a Zune-boy I have to say it is ridiculous that:

1.no new wi-fi features have been introduced in 1 year.

2.No Video material available on the Marketplace.

3. The lead in wi-fi features has been lost.

Hey, what do you know? Apple just released a product many of us have been screaming at Microsoft to make months and months ago. I don't know how many times I posted about the need to add internet browsing to the Zune! They had all the time in the world to make a big splash and they didn't. I gave Zune a chance, but I don't know how much longer I can take this inactivity. Where are all those WIFI features??? Where?!?!?!?

The new iPods are awesome, no doubt. Still, they can't beat the Zune for video playback.

Only the iPod touch ($300) and the iPhone ($400) offer better screen sizes for video playback. The Zune still has the edge at $200.

But then, I'm big on screen size and that's not a priority for everyone.

Wow this is pretty heated. I'l just like to point out that Mandy didn't say there wont be updates till after the holidays, she just said she couldn't announce anything at that time. At any rate, ball's in your court microsoft

Maybe Apple took a look at this website and built the iPod Touch from what we wanted, Zune can still beat Apple to the MP3 market. NEW FIRMWARE, WE NEED IT, and maybe sharing over Wi-Fi and talking to people over Wi-Fi internet and trading songs and stuff.

All you guys screaming yr heads off just wait for Zune 2. Lets see what they have for us before spanking them. And they will release more info only after the iPod excitement dies down a bit. Remember last year. I think the timeline will be same.

Wait, who's moderator currently checking all our posts? It coulnd't be cesar. I'm sure he went to see the new iPod to see what the Zune could beat them in. Oh yeah, forgot about timeline.

sjgmoney said:

"No doubt the Zune got spanked Zuneless, and price cuts occur all the time, but name the last product you bought that dropped 33% in two months?

Supply and demand, not enough demand = 33% price cuts."

If you go back and look at what I wrote, you'll see I specifically called out demand as being a possible concern and reason for the drop. And yes, you are a Zune-boy... whatever that is.

^^ The problem is that that is exactly what we've been saying since we first bought our Zunes last year! Just wait and see what it can do and we haven't been shown one thing yet. Now we have to wait and buy an entirely new product so that we can unlock the features that were supposedly so "easily unlockable" in the first place. The ability to easily download and update firmware on the Zune was a major reason a lot of people, including myself, bought one.

Cesar,

Bring a message to the masses.  Renew our faith.  Get whoever up the chain to release information.  Be our hero!!

well after the disappointment that was the iphone touch, it's time for the zune 2 to hit the market!

Lets see a ultra slim 4" touchscreen with full zune store and wifi, BUT GIVE US SPACE, the touch was killed dead by the fact it has only 12gb, that sjust rediculous for a highend music player. Ya they included safari, but with that little space it's nothing of a video player, give us a 60-80gb version atleast!

Come on Microsoft do us right! I own a Zune 1.0 but i want my uber sexy Zune 2 Elite ;)

ya and whats the deal how come we havent had a firmware upgrade with new features in... forever, i mean come on wheres the zune store, wheres the video downloads, podcasting, you know... the cool stuff we were all expecting after we were told that the zune firmware would be an evolving platform.

I'm screaming at them because they have lost the plot. How can you say wait for Zune 2, when they haven't even launched the first in Europe?!?!

What are they going to do, release a new one in America only? They need to think about strategy in the rest of the world too, this is where MS have failed, not just in selling the zune, but promoting it and features which have been asked for over the year. Poor show.

So where you say wait, I say re-think. If MS bring out their new ones and they aren't as attractive on half of the features Apple announced it's game over.

I've been an Iriver user for the past 4 years, it's dying on me I need a new mp3 player, Zune was my first choice, but none sold in the Uk. Now they have the itouch, very tempting...

Rohit, you got admit its embarrasing that the Zune team let Apple steal their thunder by releasing a Wifi store first.  I think most are willing to wait a week or two.  Lets just hope that Microsoft announces enough to narrow the gap that was made even wider today.