Conceding defeat?
It is thought Microsoft has no intention of releasing revamped versions of its Zune media players and will concentrate its efforts elsewhere.
However, Bloomberg reported that a source said that the Zune brand will live on as software on mobile phones, specifically WP7 offerings.
The software is Microsoft's answer to iTunes and lets users purchase songs, films and stream unlimited music for a monthly fee. However, it is not as popular as Apple's musical offering and Microsoft's Zune music players never took off like the iPod either.
In fact, Zune devices failed to get into the top 5 music player by unit sales in 2010, according to NPD Group, with Apple's iPod commanding a massive 77 percent of the market.
It is thought that Microsoft is pulling the plug on new Zune hardware as there is limited demand and it wants to put its energy and money to better use elsewhere. Yet, there is still a chance the Zune features will be popular on WP7 phones and the Zune software was touted as a key feature at the platform's launch last October.
Microsoft told Bloomberg: "We have nothing to announce about another Zune device - but most recently have introduced Zune HD to Canada via the Zune Originals store and remain committed to supporting our devices in North America."
"We are thrilled by the consumer excitement for Zune across many new platforms, including Windows Phone 7 and Xbox 360. Our long-term strategy focuses on the strength of the entire Zune ecosystem across Microsoft platforms," it added.
Sadly it appears that Microsoft CEO Steve Ballmer's prediction that Zune would be bigger than Apple in 2006 has not come true.
Trumpeting the launch of Zune, Microsoft's then president of entertainment and devices reportedly said the software giant had earmarked ‘hundreds of millions' of dollars in Zune over 3 to 5 years in a bid to beat the iPod.
Apparently Microsoft split its Zune team in 2 in 2009 so its software people could look at extending Zune's reach to other platforms including mobiles, the Xbox and PCs, leaving the hardware experts to do their thing.
The last big Zune hardware launch was reportedly in 2009 and a Zune HD with more storage was rolled out just last year. It is believed Microsoft will continue to try and shift its existing Zune models.
