Details are still coming in, but it looks like Microsoft will be killing off the Zune. Not much is known, but sources say that Microsoft plans on killing off the hardware aspect of Zune and instead focus on the software aspect.
As Engadget reports, a "person familiar with the decision" is saying that Microsoft won't be producing any new Zune media players. Instead, Microsoft will be focusing on the software aspect of Zune since it already has its foot in the door with the Xbox 360 and Windows Phone operating system. Instead of making new Zune players, Microsoft will be working on improving the software. But will it still be called "Zune?"
Zune, which was introduced in 2006 as an alternative and direct competition to the Apple iPod, never managed to defeat the iPod in sales.
We will post more on this as details come in.
[UPDATE] A spokesperson from Microsoft responded to these claims by saying "We're absolutely committed to providing the best movies, music, and TV show experiences through Zune on Xbox, the PC, Windows Phone 7 and Zune devices. We'll share more information about the evolution of the Zune entertainment service and Zune hardware as future plans develop."