Microsoft: Zune requires large investment, won’t pay off soon

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Microsoft says that its upcoming Zune media player will require “hundreds of millions” of dollars to develop and market, but that the investment will not pay off immediately for the company. “It is something that is going to take time,” said Robbie Bach, president of Microsoft’s entertainment and devices group. “This is not a six-month investment time horizon,” he said, adding that it may take three, four or five years for the project to succeed. Bach also said that his Microsoft group—which includes the Xbox, smartphones and Zune products—sees at least another year of losses. “Fiscal ‘07 will be a loss. We think that turns to profit in 08,” said Bach.

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LC Angell

LC Angell was a senior editor at iLounge. Angell is known for her work on various aspects of the Apple ecosystem, including iPhone, iPad, and iPod. In his role at iLounge, Angell was responsible for a wide range of editorial content, including reviews, buyer's guides, news, and features.