Is Microsoft’s “iPod killer” doomed?

This apple just might be too much to chew, even for Microsoft. The IT-giant recently announced their plans to launch a competitive portable audio device and a software solution branded as Zune. Microsoft’s market entry is however a very late one. Apple is dominating the market with their end-to-end iPod/iTunes solution, and the rest of the market is filled by non-restricted DRM free MP3 players. The question is how does MS plan to gain competitive edge against Apple and others? What could they do better? Many speculate that they can’t, and that the Zune is already doomed.

Managing complicated, evolving DRM technologies requires the sort of complete control Apple has over the iPod ecosystem — software, hardware, DRM and music store.

The best alternative would be to dump DRM altogether and go with unencrypted MP3s — a position advocated recently by Yahoo. Record labels aren’t likely to support that, however, and their resistance effectively forces Microsoft to compete with a copy-restricted alternative.

Source: Wired