Zune Phone

In the past week I have read several articles here, here, and here about Microsoft creating a Zune Phone. I think it will be yet another mistake for Microsoft. I know they have more money than god but they really need to learn a valuable lesson from the Zune and not dump more money into a product no one really wants. 

If they do develop a Zune Phone or a non windows mobile phone they are clearly focusing on the Xbox chapter of their history lesson rather than the Zune chapter. The Xbox 360 was unique in that it was the first next gen console to enter the market the only competitor is Sony with the PS3 and they didn't come into the market for a full year after the 360 launch (Nintendo Wii is not really a next gen console although it was a smashing success Nintendo was going after a different market than the 360). The game console market is also unique in that gamers are a very engaged market segment and are willing to provide a ton of valuable feedback to help improve the product and clearly the Xbox development team used this info to its fullest extent. 

The Zune and now the Zune Phone have a much bigger barrier in front of them. iPhone and now Google's android have established a market and whatever MS is going to try to do with a Zune Phone will seem like a me too product. The market is also broader than the gaming market and we have seen how MS does when they try to provide a product that is all things to everybody (where is my freaking WOW). They don't seem to be giving up on the Zune so I guess when you have buckets of cash laying around you can afford to live with 4 % of market share and I am sure the barriers with Zune Phone will be much higher. I suppose MS could create a MVNO and push the Zune Phone out on their own without being attached to a specific carrier. But even this has been an impossible business model if Helio, ESPN, Amp'd, and Disney couldn't create a market I don't think the Zune Brand will be able to either.