Zune's 54% Decline Drags Xbox Division Down

Digging into Microsoft's recent earnings report - the one that stated that the Entertainment and Devices Division over-performed - one element of that division stood out.

Certainly, recent Xbox 360 offerings and price-cutting save a healthy uptake of that part of the division. On the downside, however, was the Zune. If you're British, you may only have seen Microsoft's iPod beater in mythologies. If you're in the USA, where the device has been on sale since 2006, it's possible you've seen boxes of the music player lying around the place.

Well, here's what Microsoft's most recent Form 10-Q has to say:

"Zune platform revenue decreased $100 million or 54% reflecting a decrease in device sales."


Read Full Story >>
The story is too old to be commented.
IMBACKPP3488d ago

Why the hell are they making that crap can't they instead use the $$$ for Exclusive's. Dump that piece of Sh*t God sometimes i think Monkeys are running that place.

ultimolu3488d ago

And yet you 360 fanboys had the f*cking balls to laugh at Sony's first party exclusives.

Microsoft has the money but they are f*cking stupid. They're wasting money on things that SHOULD be used for exclusives.

DavidMacDougall3488d ago

juuken > PP

My broken PS3 > PP's life

Jerk1203488d ago

Juuken doesn't own anyone. Her arguments and points are always stupid ones.

It's always something like..


BLUR1113488d ago

Yeah like sony didnt do when they could have bought COD 4 for exclusive to PS3 or could have kept FF13 and Tekken 6...

I have a great feeling you do not know how microsoft works

Maybe E3 will shut some of you fans up about what games are better than the others!!

Sony has announced alot of their tricks and that would be because it is make or break time for them. while MS is in the lead, they don't have to spill their guts out so soon like sony.

ultimolu3488d ago

Please explain to me how my arguments are stupid when I just made a valid point?


Those third party games are not driving the 360's graphical engine correctly. I know for a fact a first party exclusive could push the 360. The 360 is more than capable of what it's showing now.

Either prove me wrong or sit down.

karlostomy3488d ago


Why do you always need to SHOUT?

It makes you look quite silly.

Are you afraid no one will listen to you?
Did Daddy not give you enough attention when you were young?

Is that why?

ultimolu3488d ago (Edited 3488d ago )

karl, why are you stalking my comments?

Is it because you have no damn life whatsoever?

Sleipnir: Immaturity at it's finest. You'll have to do better than that. :D

Jerk1203488d ago

Don't tell me to sit down, slut.

You forget who owns you here.

heyheyhey3488d ago (Edited 3488d ago )

yeah karl... why DO you stalk juuken?

you only comment to reply to her comments... are you looking for a phone number? you interested? you can tell us it's ok


are you some wannabe-pimp gangzta? all you own is your mum's basement and a sh!tty attitude

karlostomy3488d ago (Edited 3488d ago )


I am not stalking you Juuken. I am commenting as a 360 fan in the 360 section. What are you doing here, Juuken?

you are trolling the 360 section, but accuse me of stalking?
get a grip my dear Miss-crazy-attention-whore.

Looks like that one came back to bite you in your big lard-ass, huh?

@ heyheyhey

yeah nice. there is no way i'd want to touch Juuken. Just think of all the nasty diseases she might give me. But dude, if you're game, then you could try your luck... I hear she's available....VERY available!

ultimolu3488d ago

And you troll the PS3 section karl. Whenever there's bad news, you're there to remind us that Sony's 4 billion dollars in debt! Tell me, do you work for Sony?

It's as if you're wishing for their demise 24/7.

I only go on 360 articles if I have something relevant to say.

heyheyhey3488d ago (Edited 3488d ago )

comment in a rival console's section DOES NOT equal stalking someone online and replying to each of her comments

you keep calling her fat, it fails at concealing your true feeling's lol

oh yeah and dumbass, let's learn basic maths ok? 3.31bn does not round up to 4bn


i'm cool buddy, i don't need internet women to fulfill me sexually... if you want you can go ahead and have a taste yourself, whatever floats your sex boat

Jerk1203488d ago

Heyheyhey, it's okay. I know you have a crush on Juuken but we can work something out.

I get the lower half you get the upper half. See? We can share.

No need to be greedy.

karlostomy3488d ago (Edited 3488d ago )


I think heyheyhey is jealous!
Perhaps he likes you huh?

Maybe you and he could start a n4g troll family?
*hums wedding song*

please remember to *NOT* invite me to your wedding.

@ heyheyhey

3.31 billion at June 08.
+ 6 million consoles at $50 loss per console = 3.6 billion
+ losses from home development = about 3.7 billion
+ expected losses from the upcoming second half of fiscal 09 = about $4 billion.

yeah, maybe not quite $4 billion, but close enough! *shudders*

ultimolu3488d ago (Edited 3488d ago )

Well, you and Sleipnir have something going on there karl. Perhaps you guys should shack up and get to know each other.

Just don't invite us to the wedding because we'll be too busy playing Killzone 2.

Oh, and karl? Sony lost three billion, not four.

Stop playing ANALst!

Let's look at how much Microsoft lost for shoddy hardware karl, shall we?

990 million and counting.

And didn't they lose money with the Zunes as well? Vista? Oh noes!

Grow up dear. Sony will survive.

heyheyhey3488d ago (Edited 3488d ago )

yes, karl... you can copy jokes well can't you? now if only you learned to do maths..

what you basically said there was "no u".. im sure you feel like this an achievement

EDIT: lol, not that juuken can do any better apparently.... what is it with the internet and repeating the same insults to each over over and over again... it's like a sh!tty playground in here


where is the proof that Home cost $1bn? Home is making money back already anyway, microtransactions and advertising

Sony cut down hardware costs since June 08

as juuken said... stop playing analyst, your not very good at it

theKiller3488d ago

specially the gaming division

Obama3488d ago

Who wants to bet that Karl is tracking Juuken? XD

heyheyhey3488d ago

oops... i meant where is the proof that Home cost $100mn?

BLUR1113488d ago

I don't think he is tracking juuken.
all you have to do is to take a look in microsoft aticles and you will find the lame nazi comments from you bitter sony trolls.

Sir Ken_Kutaragi3488d ago (Edited 3488d ago )

...This more like the 'Open Zone' of the good old days!!! ;-D
Where are the Mod's???
They banned me twice this month for a few days'ish.

I can't even Sneeze without getting banned now!!! ;-D

+ I wish/pray for Micro$oft to fail 24/7!!! ;-D
(GOD i hate them and their Fans and anything to do with them, and i'm happy to say it to!!!)

ultimolu3488d ago

My dear boy...if you saw a guy with a Hitler avatar, what would YOU think?

Wouldn't there be a better way to interpret how Sony *sucks*?

Gaara_7243488d ago (Edited 3488d ago )

did you for get to add the ps2-psp hard ware and soft ware profit on that?? home profit psn profit home advertsing profit ps3 software profit then u also 4got to add the profit for there tv's dvd playys blue ray dvd's film/music/phone/eletronic gadgets/banks ect yeh i dont think sony are in debt

@ everyone who says heyheyhey has a thing for ultimolu
well hes a guy she is a girl
u 2 are guys now to me they 2 seam more "normal" than the 2 guys (

Obama3488d ago

That's funny Blur111, I didn't know Mccain supports the ps3! Are you going to call anyone who disagree with you Republicans and nazi?

And you have a Hitler avatar. I don't know the reason for putting on that avatar but it shows your childish behavior.

ambientFLIER3488d ago

Hey Juuken, before you engage in another argument on an Xbox article, perhaps you should remember how it ended up last time, where you had to start a whole new account because you were being ridiculed so much.

Just stay out of the 360 section. I know there isn't much to do on the PS3 side, but come on...give us a break. Go talk about curtains or silverware in Home or something.

+ Show (22) more repliesLast reply 3488d ago
Says you3488d ago (Edited 3488d ago )

You XBox 360 fans think considering if they did they wouldn't be affected by this recession or shut down game studios heck if they had infinite pockets they would've been able to have more studios then Sony but in reality there not richer then Sony and don't even show me that market cap considering that is how much the software market is $230 billion that's not even Microsoft money

you guys are confusing there money with the software market such as Linux Mac Windows that's the software market not just Microsoft and the software market as a whole is $230 billion its the same thing with the electronics industry

Blademask3488d ago

1/2 the features on the Zune, no one would really know about, because they were too busy buying a 15th nano ipod. I think Apple created a niche market in the MP3 market. Kinda like how Wii created a niche in the gaming market. No one knows what the hell a "AAA" is in the Wii Crowd, just like no one knew what a zune was to begin with.

I think the Zune was for the smarter-nerd market, the guys that bought the creative players and what not. Microsofts mistake was to try to appeal to that Ipod niche that is buying something because of different reasons than just features. I think it really is a whole Apple/Nintendo culture. The commercials for Mac/Windows really do come to mind. They are the in crowd. And MS is the guy with not the hippest clothes/cool factor trying to appeal to them. It was just never going to work imo.

Unlike Fedex/UPS to where its more of a service and both could thrive early on, people actually didn't care who provides the service, just who could do it better. If that attitude was in the MP3 market, I think the zune would have come out on top, but I doubt Apple ever saw MS as competition in the first place. And it just happens their niche market is gigantic. Most Mac users/Nintendo users aren't necessarily the enthusiasts of the media/product. I'd say they are fans?

Le Idiotce3488d ago

360 is already downing on its own.

Anyone who thinks the 360 is doing well, is clueless.
Higher sales do not equal higher profit. Microsofts Xbox adventure has costed them 9 billion in the red. How much money did MS lost on Zune?

Le idiotce shoots, Le idiotce scores.

The xbox project is probably MSs most miserable and failed side adventure yet.

Kushan3488d ago

Probably just as well that Microsoft's playing for the long game, eh Le Idiotce?

Le Idiotce3488d ago

The original xbox was KILLED off, aka no longer supported, in less than 4 years. Yes, MS is very long term indeed.

The facts proof you wrong, kid.

Microsoft talks a lot of talk. Now let them walk the walk.
Everything they have claimed so far, they have not been able to make it true.

"We dont need HDMI"
"We dont need hard disk"
"HD DVD is going to win, Blu Ray will die, we offer choice"
"We invented mii's"
"We dont need Blu Ray because digital downloads will take over by the end of 2008"

And my personal favorite:
"things breaks" (Peter Moore on RROD)

When a donkey hits a rock, it remembers the rock and the location so that it wont hit the same rock twice. You got lied to over and over again. When will you learn from the donkey and save yourself a world of hurt?

bigjclassic3488d ago

SMG and LoZ:TP says hello. Two of the this gens top games And both have sold over 5.5 million copies. Are both AAA quality, and they DONT HAVE GUNS, wow a AAA game without guns?

rockleex3488d ago


There's actually like 3-4 games worth playing on the Wii. But everything else is mostly shovelware and then there are a few games that are decent.

Not worth $250 in my opinion. Even my most hardcore Nintendo friends haven't bothered touching the system for months, except occasionally at gamenights.

Kushan3488d ago

Le Idiotce most of that comment had nothing to do with what I said o_0
In fact, even that part about the Xbox being killed off was dangerously close to being off-topic. I stated that Microsoft was in this for the long run, the fact that they killed off ONE product doesn't change this because they immediately replaced it with a much better product.
That's like saying Apple isn't in the portable MP3 player business because every time they release a new iPod, the old models are quickly killed off.

Microsoft is in the GAMING business for the long run because it enables them to get a "PC" into the living room, something they've wanted for years now and because the industry is starting to overtake Films and Music in terms of revenue, there's a lot of money to be made here and, like them or not, Microsoft is good at making money, even if it costs them a lot up front.

Why dis3488d ago

More PS3 fan comfort fud.

+ Show (4) more repliesLast reply 3488d ago
omodis4203488d ago

Zune will be the death of MS and their precious Xbox

lokiroo4203488d ago

Atari has a spot saved for you MS, right next to ET.