According to a new report from Business Insider, Microsoft will not be working on any further versions of its Zune media player. While the Zune is generally well-regarded, the device has never been able to generate sales impressive enough to put a dent in the competition. Naturally, in the world of MP3 players, that means facing off against Apple's ubiquitous iPod.
The original Zune was released in 2006, and later split into the Zune MP3 player line and the Zune HD line. Much like the distinction between the iPod Classic and the iPod touch, the Zune HD emphasizes the playback of movies and TV with a large 3.3" touchscreen while the regular Zune is more of a straightforward music player.
Details about the decision are still emerging, but it seems that Microsoft may continue to develop the Zune's software, which currently integrates with Windows phones and the Xbox 360. Microsoft might also be funneling its resources into Windows Phone 7 and its forthcoming tablet software platform, which will seek to compete with both iOS and Android when it debuts next year.
Microsoft discontinues the Zune MP3 player
The company will halt development of the Zune's hardware, but its software may live on


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