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read moreMicrosoft Zune rack and ruin
Stan Beer
Monday, 24 July 2006 22:05
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People point to Microsoft’s Xbox and Xbox 360 as proof that the company can successfully play in the hardware space. The question they need to consider, however, is how much money has Microsoft made from Xbox? The answer isn’t pretty.
Apple has always been a hardware and software company. Its entire history has consisted of a business model constructed around selling hardware and software in tightly bound packages. This is iPod and iTunes, Mac and Mac OSX. For Apple, it works spectacularly well.
Microsoft is a pure software company. Its entire history has been built around selling software. It can’t make money doing anything else – not even on the internet. However, when it comes to selling certain types of software, Microsoft is still the best operator by far.
The problem for Microsoft of course is that in the internet and open source age, operating systems and office productivity software are gradually becoming obsolete commodities. Microsoft needs to find new areas in which to grow.
That’s why we see Microsoft attempting a project like Zune. It’s a shot in the dark and it’s doomed to fail.
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