Microsoft Will Cease to Introduce New Zune

by on March 17th, 2011

Bloomberg reports that Microsoft is going to discontinue Zune music/video player and will not refresh the device after selling the current available units in stock.

Microsoft Corp. (MSFT) will cease introducing new versions of the Zune music and video player because of low demand, letting the company shift its focus to other devices, according to a person familiar with the decision.

Microsoft will put Zune software onto mobile phones, running Windows operating system. Zune software lets customers buy songs and movies, as well as pay a monthly fee to stream unlimited music. Microsoft Zune was introduced to compete with Apple’s iPod In 2006. Steve Ballmer said in a November 2006 interview that they will beat Apple iPod but it’s not going to be easy but unfortunately the device did not even kill the top five MP3 players of the market. So Zune meets it fate.