Microsoft is making a second attempt to take a bite out of Apple’s dominance in the digital music business with an overhaul of its MP3 player, the Zune.
The company releases its next generation of the portable music and video player today, amid considerable less fanfare than when it debuted last fall.
Microsoft sold just over a million units of the device its first year of availability – business in line with company forecasts, but largely disappointing in the eyes of the press and analysts.
Microsoft execs acknowledge that the original Zune suffered from its rush to market, but they are hoping a slimmer design, a sleeker interface, a new online store and more product choices will help the company this Christmas.
“We’ve rebuilt [the Zune experience] from the ground up,” said Jason Reindorp, director of marketing for Zune.
The revamped device is available in three different storage capacities – 80 GB for $250, 8 GB for $200 and 4 GB for $150 – versus just a single 30 GB offering in the first version.
While the updated Zune may be short on hype, Microsoft is throwing a bigger marketing push at the device, tripling spending from the reported $9 million the company invested in advertising last year.
Version 2 of the Zune has drawn generally positive reviews from tech blogs that panned the first generation of the device.
Reindorp said that while Microsoft has its sites set on Apple and the iPod long term, the company is first looking to overtake the other would be iPod killers on the market.
Market research firm NPD reports in the third quarter Microsoft ranked fourth in market share among makers of MP3 players with 2.3 percent share, trailing Apple (72 percent), Sandisk maker of the Sansa (11 percent) and Creative Labs maker of the Zen (3 percent).
“Our No. 1 business priority this year is we want to be the clear alternative to the iPod,” said Reindorp.brian.garrity@nypost.com