It's not official until someone at Microsoft says it's official, but Bloomberg's Dina Bass is reporting that Microsoft 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."
Bloomberg says that Microsoft will continue selling current versions of the Zune, but the Zune HD seems to be the only model that's even semi-viable at this point. (The Zune site still links to buying options for earlier Zunes, but I have a hard time believing anyone is still buying earlier Zunes -- unless there's someone out there who'd rather pay $649 for a 120GB Zune than $249 for an iPod Classic of the same capacity.)
No, Zune hardware going away isn't news. But here's an interesting question which hasn't yet been answered: Is the Zune name sticking around for the Microsoft entertainment services available on Windows Phone 7 and elsewhere? The Bloomberg story says Microsoft will focus its Zune effort on services, but I'd guess it's not a given that they'll carry that name forever. They're quite good-Windows Phone 7 handsets are the only phones to come with music and movie services which are even vaguely competitive with the Apple iTunes universe -- and the Zune name, fairly or unfairly, is synonymous with "unsuccessful Microsoft attempt to compete with Apple."
A couple of years ago, I argued that Microsoft had another brand name with a great reputation that could be a logical replacement for poor battered old Zune: Xbox. Still seems like a good idea to me. And I can't figure out what the argument in favor of maintaining the Zune name is . . .
This story, "Zune Hardware is Dead; What about the Name Zune?" was originally published by Technologizer.