Microsoft has officially abandoned Zune, admitting publicly for the first time that production of the hardware has ceased. RIP, iPod wannabe. Microsoft said that Windows Phone will be where it puts all its attention on in that space and that Zune will live on as a brand. The Zune brand will live on as the face of Microsoft’s content sales services. It remains a mainstay in the Entertainment section of the Xbox dashboard, for example.
"We recently announced that, going forward, Windows Phone will be the focus of our mobile music and video strategy, and that we will no longer be producing Zune players," an official statement read. "So what does this mean for our current Zune users? Absolutely nothing. Your device will continue to work with Zune services just as it does today. And we will continue to honor the warranties of all devices for both current owners and those who buy our very last devices. Customer service has been, and will remain a top priority for us."
When Microsoft launched the first Zune player in 2006 it had high hopes that it would be able to compete with Apple's iPod. After serial iterations of the hardware, it was clear that Zune just couldn't compete at the level Microsoft wanted it to compete at.