Can Zune 2.0 make good no. 2 to Apple??

Microsoft may release revamped Zune for the holiday season,but many questions they need to answer.Right now, Zune boasts 10% market share in Hard drive based portable media players according to NPD.Once Zune family expands to new models and new markets like Europe it may take no.2 position easily.But that would be still distant no.2.Microsoft repeatedly failed in CE market and duds include IPTV,Tablet PC,Media center and i can add XBOX,Zune also to the list as they are not making money yet.

Windows was huge success 'coz the partners business model worked well.Microsoft tried to replicate that success to counter iPod juggernaut but backfired.Then they took Apple approach i.e. vertical business model.So far,the results are so-so.In-fact Microsoft tried to take different approach to Apple to bring social element to music,which is not received very well in the market 'coz of Zune's crippled WiFi.Even if now Microsoft come up with full fledged WiFi,still Apple is ahead as they again took initiative with iPhone and iPod touch.I wonder how Microsoft will add browsing functionality to Zune with Squircle UI.

But anti-apple voices also growing as the company becoming more like monopolistic in music by controlling end to end market.This can move away some switchers to Microsoft camp if Zune 2.0 is out of the box.This time around Microsoft taking control over manufacturing unlike Zune 1.0,when they had to depend on Toshiba's off the shelf not so appealing design.So,one can expect better industrial design with slick looks.Zune 1.0 UI was appreciated and may be some improvements will make it even better.As per content handling, may be better podcast support is must to win.Some social elements like playlist sharing and ad-hoc things will boost the appeal.

If Microsoft can not excite music fans this season,they may better search for exit route by next holiday season as marigins are dropping everyday in CE industry and it may not be good idea to burn more resources on duds.Even for XBOX also its make or break year,which already lost more than $4 billion.