In an industry, becoming the “default” product is a dream come true.

When most people think of buying an MP3 player, for example, they immediately think about an iPod. It’s not that other products aren’t as good and/or better value, it’s just that the iPod has become so ubiquitous, it’s difficult for other products to attract the spotlight.

Apple has maintained its dominance by continually pushing innovative, even if it means cannibalizing its existing portfolio. By continually introducing new iPods, Apple has kept its rivals on their heels while, in the process, slaying players such as Dell.

Given this competition environment, it will be interesting to see if the Microsoft Zune can establish a foothold and establish itself as a viable alternative to the iPod.

Most of your are probably saying “You’ve got to be joking!” but the Zune seems to be gaining some traction as it evolves from its roots as a clunky brick with little design appeal into a slick product with some cool features.

The question is whether it’s too little, too late. The iPod is so established and iTunes has become such a behemoth (>5 billion songs sold), you have to wonder if there’s still room in the market for a strong number two.

For the Zune to succeed, Microsoft not only needs to create cool products with consumer appeal but also become a music retailer or, at least, make it easy for Zune owners to buy the music they want to make the device useful.

The other challenge is perception. The Zune is probably still plagued by its debut in 2006. It’s difficult to have sizzle if your first product was called a “brick”. Nevertheless, if any company has the marketing muscle to change its image, it’s Microsoft. Of course, that’s a lot easier said than done.

If Zune has any chance of seeing more success, there’s no silver bullet. Microsoft has to keep on creating cool devices, push forward as a music distributor, and try to do the best job it can convincing people the Zune can Zoom.

More: For what it’s worth, Piper Jaffray’s Gene Munster believes Apple will sell 11 million iPods in the fourth-quarter – along with 2.8 million Macs and five million iPhones. For more on what Apple, Microsoft and others are offering these days, check out SiliconValley.com.

Technorati Tags: iPod, microsoft, zune

but the Bill (Gates) and Jerry (Seinfeld) show is apparently over.

After two memorable, quirky and definitely different television ads, Microsoft has decided to pull the plug on Gates and Seinfeld.

It’s a strange decision because you have to wonder how many layers within Microsoft had to approve the concept before it was finally allowed to see the light of day? Sure, the ads weren’t unanimously embraced but they attracted a lot of attention. And who’s to say they weren’t going to get better?

I’ll give Microsoft credit for trying something new and, to be honest, the ads had potential. Seinfeld was Seinfeld but he was outshone by Gates, whose stole the show as his sidekick. If the series had been given more time to evolve, it would have been fascinating to see Gates’ persona and public personality evolve.

So, I guess it’s back to the drawing board for Microsoft, which is spending $300-million on an advertising campaign to give itself a new image. And what of Seinfeld? If they’ve committed to paying him 10 million smackers, what’s he going to do now?

For more on the story of “Not that there’s anything wrong that that”, check out Wikipedia. For one last view of the Gates-Seinfeld show, here’s the first episode:

Technorati Tags: Advertising, bill gates, Microsoft

A lot of people seem surprised by Microsoft’s decision to drop the retail prices of Vista, including a whopping 30% reduction for Vista Ultimate.

“It’s sort of an odd move,” said Gartner analyst Michael Silver, while NPD Group’s Chris Swenson opined “I can’t remember a big price cut like this.”

Boys, welcome to the new and exciting world of OS competition.

Gone are the days when Windows dominated the landscape while Apple struggled on the edges, and alternatives such as Linux were embraced by a small, ultra-geeky group. Today, Apple is booming while Linux is – surprise, surprise – moving, if ever so slowly, into the mainstream. Who knows, maybe IBM will bring back OS/2 given the revival in the OS landscape!

Microsoft may have sold 100 million copies of Vista since its launch last year but even the folks in Redmond know that Vista hasn’t been a booming success from a financial, brand or technology perspective.

For all of Apple’s poking fun at Vista, the truth is consumers – for the first time perhaps ever – have real choice. Buying a Mac is no longer seen as risky if you aren’t tech savvy, a graphic designer or a student. These days, people, who would have never thought about buying a Mac, have become Apple disciples even if it has meant paying a premium for the privilege.

All Microsoft is doing by slashing the prices of Vista is being smart. If you need a better competitive position to deal with pesky, revived rivals, a quick and dirty tool is lower prices.

The question, of course, is whether lower Vista prices will work. Since its launch last year, Vista has struggled to resonate with consumers even as Microsoft has dealt with some of the criticisms. It’s particularly telling – and embarassing for Microsoft – that demand for XP is still alive and well. itComputer Canada, for example, just launched a SaveXP campaign.

If Microsoft is going to revive Vista, it’ll probably take more than lower prices. Perhaps the next version of Windows will resonate with consumers but the harsh reality is the OS marketplace has changed and there’s nothing Microsoft can do to restore Windows’ dominance.

There’s a new kid in school, and his name is competition.

Technorati Tags: Apple, Linux, Microsoft, Vista