Report: Microsoft to cease production of Zune

Microsoft is expected to stop producing its Zune MP3 player, although the software is expected to live on in smartphones running Windows operating systems, Bloomberg News reported.

Zune, introduced in 2006, never managed to break the iPod’s
grip on the music-player industry and became the brunt of late-
night talk-show jokes. Apple Inc. (AAPL)’s iPod led the market with 77
percent of unit sales last year, while the Zune failed to crack
the top five, according to NPD Group Inc. By adding the Zune
features to the Windows Phone software, Microsoft aims to gain
ground in another challenging area — mobile phones — where
it’s lost market share to Google Inc. (GOOG) and Apple.

Microsoft, based in Redmond, Wash., declined to
comment on plans for the Zune.

I would comment if I have an opinion as to whether the Zune was or was not actually superior to the iPod, but I have a Sandisk Sansa, which it totally OK.

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The MIcrosoft Zune, shown here in many versions, is reportedly leaving the marketplace.