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Apr 12, 2001
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Bloomberg reports that Microsoft is canceling future development of its line of Zune hardware devices, shifting the focus of Zune services to Windows Phone 7 smartphones.
Microsoft Corp. (MSFT) will cease introducing new versions of the Zune music and video-player amid tepid demand, helping the company shift its focus to mobile phones, according to a person familiar with the decision.

The company will concentrate on putting Zune software onto mobile phones such as those running Microsoft's Windows operating system, said the person, who declined to be identified because the decision hasn't been announced.
First introduced in mid-2006 as an answer to Apple's successful iPod line, the first Zune devices debuted later that year but never achieved substantial share in an MP3 player market that continues to be dominated by the iPod.

The company will reportedly continue to sell existing Zune devices, but will no longer develop new hardware for the line.

Article Link: Microsoft to Kill Off Development of New Zune Hardware
 
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I guess their marketing slogan "Welcome to the Social" really translated to "Social Misfits" :)
 
Wow, and nobody could have seen this one coming. Proof that the demand is low: I've never even seen one!
 
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What took 'em so long?
 
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Yeah makes sense. Best for them to focus on Windows Phone 7 and possibly later release an iPod Touch like device you know, sans phone. Not that I don't think it won't also probably gain disappointing market share.
 
Wow, and nobody could have seen this one coming. Proof that the demand is low: I've never even seen one!
I have! One. ONE! A coworker has one. It's really nice, actually. A very worthy competitor to the Touch, but it is obviously totally overshadowed by anything Apple puts out and Microsoft doesn't seem to have a clue how to get behind something when it's not the top product in a category. I think this is really too bad.
 
Who didn't see this coming? Microsoft is crashing...hard!!!

I actually see this as a good thing for Microsoft. Like Apple did when Steve returned, they are cutting everything that doesn't make sense so they can focus on their strategy. Steve killed Newton and it got a lot of flak for Apple similar to this, but it was the right call.

Microsoft has it's toes in way too many pots. Figure out a strategy, pursue it, and ruthlessly cut everything else without succumbing to 'sunk cost' syndrome of throwing good money after bad money.
 
Wow, and nobody could have seen this one coming. Proof that the demand is low: I've never even seen one!

Concur. Never once saw a Zune.

I get the sense MS is scrambling to catch up. They are a software company, and Apple is a hardware & software company (and I'll concede in many cases hardware = gadgets). However,they are all driven by a few streams of software which they continue to improve upon.
 
Concur. Never once saw a Zune.

I get the sense MS is scrambling to catch up. They are a software company, and Apple is a hardware & software company (and I'll concede in many cases hardware = gadgets). However,they are all driven by a few streams of software which they continue to improve upon.

I wouldn't say scrambling, a company the size of Microsoft can't scramble if it tried. What is happening, though, is that after 10 years of focusing on the Enterprise, Microsoft is turning its eye back to the consumer space and is realigning its strategy.
 
Can't say that I'm surprised by this. Personally, I think Microsoft is just going through the motions when it comes to the music player business.
 
lol i didnt even know they have been making new lines.....i dont think i have ever seen a zune in real life, or know of any person even remotely interested in purchasing one....
 
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