Zune to Debut at $250 on November 14

Same price as Apple’s 30 GB iPod. The subscription service costs $15 a month. Paul Thurrott says:

This has the makings of a disaster. $14.99 a month is too much for a subscription service. The Zune is incompatible with both iTunes and every single WMA-based service on the planet. What the heck are these people thinking?

What I don’t understand is why Microsoft is claiming they expect to lose money on these first-generation Zunes. Apple’s turning a nice profit on the iPod — the Zune has a slightly bigger screen and Wi-Fi and they have to sell it at a loss?

★ Thursday, 28 September 2006