Citing a “person familiar with the decision,” Bloomberg is reporting that Microsoft will not release any new Zune digital music players. Microsoft will instead focus on the software platform which is already integrated into its Xbox and Windows Phone 7 platforms.
Microsoft will continue to sell existing versions of the Zune. It’s not clear whether this means that it will continue to manufacture current Zune players or if it will simply let existing stocks slowly vanish from store shelves.
Microsoft introduced the Zune in 2006 but it has never captured a significant market share. It hit Canadian shores in 2008.