What does it matter how Zune sales stack up against Apple? MS just has to worry about making it profitable. I don't think it is there yet, but it probably isn't far.

They are about to seperate the Zune software from the Zune hardware. Zune Video Marketplace is already going to be on the 360. Expect the Zune software to start being available on Windows Mobile devices and other hardware as well. They should make a good profit from this.

One word:

Revenue.

XBOX portable is true = bye bye to most of PSP exclusives.

lol @ guy who thought PSP GO! was PSP2

I would buy a xbox portable if it was cheap

Actually, profits are more important than revenue.

And if marketshare determined whether someone should stay in a market sector, Apple would have been out of the computer biz a long time ago.

Yes but let's imagine Zune stays at a fraction of Ipod's sales. That would mean it would remain an insignificant business segment in MS because it wouldn't matter if the profit margin was 30 or even 50% because the yearly profit number from Zune compared to the total MS $20billion yearly profits would be like a drop in the Red Sea.

Mini RRoD would be Epic win...

MS has alot of things involving music labels(Sony excluded I assume) That will be very competitive agaisnt the IpOd..Since the Itunes store is practically pointless,You can steal Music with though Ipod + Itunes...You can't sync it or something...

Great little topic.
And Nice work--thank you for sharing- for me this makes perfect sense though.
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It's expensive to get into that arena...unless it can play some XBLA titles...then you'll have a source of games instantly!