Report: Zune Devices Killed by Microsoft; Brand Name Lives On (UPDATE: Zune Still Alive)

Microsoft's Zune HD

     Microsoft has been trying to compete with Apple's iPod since 2006, when they first announced the Zune devices. The Zune is basically an iPod Touch competitor. It has a large touchscreen, an FM radio, and more features that even Apple's iPad didn't have when they announced it.
     Although the Zune looks good on paper, and even in person, it never quite caught on. For some reason not many people liked the Zune, or maybe it just was more cool to own an iPod. In any case, the Zune has not been a success, and according to Bloomberg, Microsoft is finally giving up the Zune line of devices.
     According to the Bloomberg report, which cited several sources familiar with the Zune line, says that Microsoft will be stopping development of their Zune devices, but will continue the Zune brand as their current media player software and online media store on the XBOX 360 and Windows Phone 7 devices.
     The popular technology blog CNET contacted Microsoft and asked them to comment, but to no avail. On the other hand Bloomberg contacted them and got the following response:

 "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."

     ZDNet's Mary Jo Foley also got Microsoft to comment:

 "We're not 'killing' any of the Zune services/features in any way. Microsoft remains committed to providing a great music and video experience from Zune on platforms such as Xbox Live, Windows-based PCs, Zune devices and Windows Phone 7, as well as integration with Bing and MSN."

     If Bloomberg is correct about Microsoft stopping development of the Zune, Apple's iPod Touch get's one less competitor, and it makes them almost the only one in it's category. There are a few Android based portable media players, but none really closely match the iPod Touch. Although not many used the Zune devices, this still does seem like an advantage for Apple and it's iPod Touch.

Source: cnet.com