Microsoft is making a big mistake here.
Microsoft is making a big mistake here.
Not sure what you don't understand about the move, though. Simply put, the thing just isn't selling. Maybe it's the terrible marketing, maybe it's the choice of verbs to describe the functionality ("squirting"... really?), maybe it's fact that PlaysForSure couldn't play on it, maybe it's because the software delivered a sub-par performance (at least in the minds of consumers) versus iTunes.
Or maybe it's all of that, combined.
In a world w/o the ecosystem,starting fresh from day 1, I think the Zune maybe beats the iPod. But the iPod with its headstart in ecosystem just crushes it. And deservedly so -- the Zune never exists if the iPod didn't exist. The Zune was created in response to the iPod. A very good response, but Apple has executed well from day 1 to present. I'm happy if they get rewarded for the execution, even I don't particularly like the device (the pre iPod touch versions).
iTunes drives me crazy, but the Zune software looks like nothing else Microsoft ever created. It's cool, intuitive and works great.
If they had gotten in to that ecosystem a bit sooner it could have been different, but the timing was all wrong.
In this case I think people just didn't try it. They already owned iPods when they were superior devices and never switched even when Zune passed them in quality.
Clueless Boss: I think we should call the lending feature: Squirting!
Embarrassed Subordinate: Uh...are you sure that's a good word?
Boss: It's great, really pushes the fun, playful image we're after. I love it!
Subordinate: It's just that it...
Boss: Yes?
Subordinate: It means...It, uh, I mean...yeesh, I'm going to go grab some lunch. <runs>
Boss: Cool, squirt you later!
Edit: looks like they did, but in software form only