February 04, 2010, 8:50 PM — In an effort to bolster its attempts to compete with the iPod, Microsoft has reduced its already comparatively low Zune HD prices. The 16GB Zune HD has dropped in price from $220 to $190, and the 32GB Platinum Zune HD has fallen from $290 to $250.
These price cuts further boost the Zune's edge over the iPod touch line in terms of pricing, with the 32GB Zune HD now $50 less than the 32GB iPod touch, and the 16GB Zune HD $10 less than the 8GB iPod touch. That's right; the Zune competitor for the 8GB iPod touch packs twice the storage capacity of its rival, for $10 less. But will anybody care?
While the Zune HD line boasts superior specs on paper, including a 3.3-inch OLED touchscreen display and an Nvidia Tegra system-on-a-chip, Microsoft has failed to put a dent in Apple's dominance over the MP3 player market. Users seem to value the overall experience of their devices rather than simple statistics. In the Apple vs. Microsoft case, Apple's iTunes Store and iTunes' seamless integration with the iPod has kept Apple customers spending more on products that offer this complete experience.
That said, this price drop might be what some shoppers on a tight budget are looking for during these rough economic times. Will the price drop help Microsoft move more Zunes?