Zune for $99

It has been recently speculated that Microsoft may price the Zune at $99 to undercut Apple’s iPod and take a serious chunk out of Apple’s market dominance as quickly as possible. After that, they can then rely on revenue from their subscription based music store and regain the loss from subsidising the Zune.

While this may be their policy on the Xbox, I think it’s unlikely that Microsoft would subsidise their player to that extent without some kind of subscription tie in, either restricting the Zune’s capabilities or just disabling the player until it can be confirmed that the owner has bought a year or two long subscription and activated their Zune. The subscription wouldn’t be essential to fully enjoying using the Zune, unlike Xbox Live being a bit part of the fun in playing the Xbox.

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