Zune Pricing - First Take<< Ny Times Reader Goes Live | Main | Underestimating Zune would be a huge mistake >> Michael Gartenberg | September 27, 2006, 09:40 PM Final Zune pricing is out, looks like $249 a unit, about $0.99 a song and $14.99 for subscriptions. While Microsoft could have made this about price, it's not the way they tend to do things (and didn't for the most part with XBox). I also imagine the labels discouraging the practice of using music as a loss leader even if Microsoft underwrote the costs. Hard to see how they're making money though at $249. They can't be getting the volume discounts Apple gets and that larger screen and WiFi all add to the bill of materials. The key , I suspect, was not being undercut by Apple and if they need to lose money on Zune to build market share, they will, much as they have done with XBox. For the moment, price against Apple will not be a factor. |
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