Microsoft hesitates with Zune player in face of «difficult German market»

Microsoft will not compete against Apple’s iPod with its Zune music player in Germany in the short term. «The German market for MP3 players is one of the most difficult in the world». Stephan Brechtmann, who is responsible for the «Entertainment & Devices» division at Microsoft Germany, said this on Saturday at an information event in Kitzbühel.

Archive notice: This article was originally published on October 14, 2007. Links and embedded videos are preserved as part of the historical record.

Buyers in Germany would have only a low awareness of the brand of a device. In addition, most players would be sold in the segment under 100 euros. «You have to be very sophisticated to survive in this

market.»

Microsoft had brought the Zune onto the US- American market in November 2006 and recently expanded the device family with two further models. «Within ten months, we at least succeeded in reaching second place in the USA in the segment of players around 250 dollars,» said Brechtmann. At the same time, he conceded that competition with the iPod posed challenges for his company: «You cannot surpass Apple in coolness, only with additional functions.» Thus, the Zune offers the possibility of transmitting songs wirelessly from device to device.

In the event that the Zune comes to the German market, Brechtmann does not rule out cooperation with existing online- music platforms such as Musicload from T-Online. «Who says we won’t enter into a partnership in the download sector?» In the USA, Microsoft had entered into competition with platforms such as Napster and Yahoo Music with its Zune Store, which likewise compete with Apple’s iTunes Store using Microsoft technology.

Achim Berg, the managing director of Microsoft Germany, emphasized at the information event that his company would use the room for maneuver in the German market. «We presented the Corporation in Redmond with a “Plan D” in which we show where we can grow even more strongly.» As part of a so-called Agility- program, the headquarters had given those responsible in the countries more freedom of decision since 2007. «Responsibility for a region promotes sales performance.»