Myth 6: Microsoft's iPod Killer Myth

Top 10 Apple Myths of 2006

Myth 6: Microsoft's iPod Killer Myth

What could overshadow the interplay between two myths simultaneously arguing that iTunes was both a power mad monopolistic monster and a whimpering failure? The Microsoft iPod-Killer Myth of course!

In 2006, Microsoft realized that the real problem with its PlaysForSure had nothing to do with its abusive DRM and a business model reliant on subscription music sales.

Instead, its failure was determined to all be the fault of incompetent partners like Napster and Yahoo! The solution: abandon all of its store and device partners to introduce a single new product that would be sold and supported exactly like Apple’s iPod.

The Fallout

The new device was immediately hailed by the same PR machine that had been busy for years labeling every new failure from Sony or PlaysForSure makers as the next "iPod Killer".

Surely, nothing from Microsoft could ever fail, and certainly not a consumer device tied to Windows.

Microsoft fueled the excitement by setting up a series of websites celebrating the new device, each repeating the same talking points: the new thing will have a huge screen great for watching movies, it will offer exciting WiFi features, and it would never, ever scratch.

Bloggers jumped in to add their own guesswork. First, Microsoft would give away the device with the Xbox, ensuring that everyone would end up with the Microsoft player instead of an iPod.

The next suggestion was that Microsoft would distribute the new player at a loss, paid for by music subscriptions, the kind nobody has been interested in over the last three years. Using that strategy, it could cost as little as $99, stealing all market share away from the iPod!

The Myth, Unwoven

RoughlyDrafted presented a series of articles looking at Microsoft's previous consumer electronics and rental subscription service offerings, including The Microsoft iPod-Killer Myth and The Online Music and Movie Rental Myth.

Ten iPod vs. Zune Myths and Ten More Myths of Zune exposed the fallacy of various claims made both by Microsoft and by giddy bloggers hoping for a nearly free device from the company that would end up being really cool.

Why Zune Will Bomb This Winter outlined Microsoft’s mistakes in marketing.

After many months short on actual details, but long on vaporous plans that never materialized, the iPod Killer finally turned up just as expected: under-performing, over-hyped, expensive, and unoriginal.

Hiding the Damages

Sales tanked so fast that Microsoft’s PR machine had to rely on a single week's sales to present any discernible blip of interest.

The worst damage came to Microsoft's former PlaysForSure partners, who were all broadsided by the new solo effort, and left to deeply discount their existing devices while Microsoft cannibalized their customer base in a botched effort to compete with the iPod. Oh the humanity!