Thursday, September 28, 2006

iTunes Store 99 cent songs, Microsoft Store 79... Microsoft points?

Microsoft has finally announced the pricing for the Microsoft Zune (the iPod competitor) and their music store. The Zune will cost about the same as an iPod - $249.99 for a 30 GB unit. But what is weird is the pricing for songs.

For consumers looking to own a song, the Zune Marketplace will sell tracks for 79 Microsoft points. A user can buy 80 Microsoft points for $1 and points will also be redeemable at its online video game store, Xbox Live Marketplace.
Microsoft said it will initially sell only music -- and no video -- at the Zune Marketplace. The company said it was negotiating with major record companies and labels.
Why exactly would Microsoft want to price their songs with their own funny money? To obscure the actual price they are charging for songs, presumable. Currently, this comes out to 98.75 cents per song (one quarter of a cent less than the 99 cents charges by Apple). But now Microsoft can "keep prices the same" but increase literal price by raising the price for more Microsoft points.

Gotta love it. Apple looks to empower customers by allowing per-song sales, where you actually own the song and can burn them to a CD. Microsoft looks to disempower customers by hiding their actual prices. Who said Microsoft was an evil empire?

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