Before the Zune launched there was one of many rumors floating around about pricing. One of those was a $99 price point. Well, I think it's time to make that a reality. Microsoft says Zune sales are on target. But that target was not that impressive and it's time to start pushing hard.
We need a Zune 2. We need podcast and better video support. But mostly we need users. The price drop on the HD-DVD drive on the XBOX has fueled those sales and that was on $20. Drop the retail price on the Zune by $150 and make the Zune way cheaper than the iPod and people will buy it.
Now I know at that price Microsoft is probably losing money. But that's where pushing a Zune pass will make the difference. Requiring a 1 year commitment won't work because then you are talking about rebates, and those will not be as effective. Just take the loss and push the pass and marketplace hard.
When the flash version release at $49 dollars, look out Santa Claus! Oh, and it wouldn't hurt to throw one in with the XBOX Elite.