Full FeedIf not opportunity, the Zune comes knocking on app developer doors
In preparation for the expected launch of the new Zune HD, you know - the one bloggers are all excited about, Microsoft is contacting developers of mobile applications. Those applications that Apple keeps in our face with their marketing are apparently desperately desired by Microsoft, so much so that they are willing to pay developers to convert them to the Zune platform. If they can’t see the potential to build for the Zune, MS will make it worth their while.
According to Business Week:
One developer of a popular iPhone application for reading Twitter messages says Microsoft recently approached him about re-creating the software to run on Zune, with Microsoft footing the bill for development costs…The programmer declined, but Microsoft’s offer speaks to the company’s legendary persistence at trying to make successes out of products that fail to excite customers the first or second time around.
One has to wonder how much cash MS has available to pay developers to build smash-hit apps for the Zune? The Zune has sold about 3 million units in its 3-year lifespan. The iPod by contrast sold 10.2 million between March and June of this year. Ouch.
Then you’ve got to wonder about why this developer declined? Too much business? Kids at home they have to tend to? A loathing of Zune and a strong desire not to be associated with anything Zune related? Anything is possible.
So to you developers out there: has MS come knocking with a fat wallet for you? If not, would you develop for them? Let us know in the comments.
Read: [Busieness Week]
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Well its obvious. If the Zune HD has the same amount of sales 1 million per year, at an attachment rate of 10 percent, the developer would sell 300,000 copies of the app. If they were to have the same attachement rate with the iPod/iphone, with sales of 20 million iPods/iphones per year, the developer would sell 2 million copies per year. Even if MS paid development cost to port the app over to Zune, the lost opportunity cost would be huge. The time and effort spent porting these apps would have a better return if used on developing new apps for the iPod/iPhone. The developer should work a deal where they are paid development cost as well as guaranteed minumum sales, as well as requiring MS to pay a premium of 75% retail cost to the developer on each copy of the app that is sold.
on August 27, 2009 at 01:50 PM - LINKOOOPS Obviously messed that one up. A 10 percent attachment rate on 1 millions Zunes would be 100,000.
on August 27, 2009 at 01:55 PM - LINK