Microsoft's Zune enjoyed a relatively short life since it was first introduced to us in 2006 and might be discontinued according to a Microsoft statement made to Bloomberg that there will be no future models,
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.
Fear not, the Zune may be discontinued but it's not dead. Hit the break to find out how.
Originally, the Zune was released to take down the iPod and Microsoft was willing to burn tons of cash to make that happen. Well, 5 years down the road and a few hundred million dollars later they were not getting any closer, so something had to change. Weak sales were the ultimate factor that made Microsoft take a look into other opportunities for Zune but I'm guessing that the continued expansion of their Win Phone 7 and Xbox 360 platforms had something to do with it as well. After all, they have the Zune software suite already in place and other hardware that can easily support it. What better way to keep a product, that still has potential, alive and cut tons of cost in R&D in production at the same time?
Discontinuation of physical hardware for the Zune isn't an admittance of defeat by the iPod's hand. It is merely a change in direction that will benefit Microsoft in the future as people move toward having one device that can handle everything.