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

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.