Microsoft has apparently killed of the hardware side of Zune. According to
Bloomberg, a "person familiar with the decision" has confirmed that Microsoft won't be producing any new Zune media players, and that the company will instead focus solely on the Zune software that already has a foothold on the Xbox 360 and Windows Phone devices (it's not clear if the name will stick around). Microsoft will apparently continue to sell its existing Zunes as long as it has stock of them.
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