Thursday, July 27, 2006

MS Zune may have limited battery life

Wall Street analyst Shaw Wu is skeptical of the battery life on Microsoft's "Zune" digital media player, reports AppleInsider. The first business day after Microsoft confirmed plans to rival the iPod + iTunes offering with its own hardware and software solution, some are already skeptical of the Zune system. In a note to clients today, Shaw Wu wrote that Wi-Fi power requirements of the Zune may weaken the battery life the new player. As a reference point, the PSP reportedly has a battery life of 45 minutes when Wi-Fi is active. Wu also believes that the effect of Zune's entry may be minimal on the iPod, but he stated that, "While the focus is on Apple, we believe this move will likely have a much larger competitive impact on Creative, SanDisk, Sony, Samsung, iRiver, Archos, and others." Shawn Wu also pointed out that many see the Xbox as a success in terms of user experience and sales, but he states that it has been a financial failure for Microsoft.

"If it were any company other than Microsoft -- who can afford to lose billions and price below cost -- we believe the Xbox would have been shuttered due to its high unprofitability," concluded Wu, "We believe Microsoft's effort in portable media will likely result in similar economics."

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