Sorry Zune fans, but it seems your beloved PMP’s days might be numbered.
Last month, there were some unpleasant rumors that Microsoft was about to kill off the Zune devices and retain the brand for media services on the company's Windows Phone 7 mobile operating system. Microsoft attempted to dispel such talk with a statement via its Facebook page that said Zune services were safe. The company insisted it wasn't killing off "any Zune services or features" but that still left room for speculation about the devices themselves.
Fast forward a month and the rumors have come back for round two with Bloomberg citing a source that says Microsoft will stop introducing new versions of the Zune "because of tepid demand." Instead, this source says Microsoft is going to focus on putting the Zune software onto other devices, such as phones running Windows Phone 7.
Microsoft is staying quiet, telling Bloomberg it has nothing to announce about another Zune device but remains committed to supporting Zune devices in North America. The company did, however, hint that we could soon see Zune services on WP7 and Xbox 360.
"We are thrilled by the consumer excitement for Zune across many new platforms, including Windows Phone 7 and Xbox 360," Microsoft said in the emailed statement to Bloomberg.
"Our long-term strategy focuses on the strength of the entire Zune ecosystem across Microsoft platforms."
So, Zune services are going to hit WP7 and Xbox 360 eventually, but what of the Zune's fate as far as hardware is concerned? Well, it doesn't take a genius to piece it all together. Though Microsoft has not confirmed plans to ditch the Zune as a device, the company has confirmed it has nothing to announce about another iteration of the Zune. And, while it's pledged to continue support for Zune devices in North America, Redmond's statement about continuing North American support leads one to believe other markets can forget about ever seeing the Zune on shelves.
Do you think Microsoft will ditch the Zune hardware? Let us know in the comments below!

"because of tepid demand."
LOL, it was never marketed to begin with. Has anyone here ever seen a Zune HD commercial? I'm not even sure I've ever seen an advert for one... anywhere. It probably doesn't help that software development for the device was locked from the get go, or that Microsoft basically killed off what little development existed for the device 5 months into its release.
Realistically though, separate media players will eventually disappear as the functionality will be merged into cell phones. Consumer digital cameras may suffer the same fate.
If Zune failed, then it's inevitable that the Zune phone (Windows Phone 7) will fail.
Both late to market. Poorly executed. Not sold in all regions of the world. Unwanted by the public. Always destined for failure.
"ALL consumer electronics products have a lifespan, and the Zune HD is 18mo old. We were completely frank about this year's Zune hardware being the WP7 phones, and we continue to both sell and fully support the Zune HD line of products. And as I've promised – we continue to bring new apps and games to the platform. More of those are in the works, I promise you."
-Dave McLauchlan, Senior Business Development Manager for Zune
you should. the 16gb is a STEAL compared to the ipod nano
dare you to go pick up a Zune HD and then say it's poorly executed, the Zune HD was a pretty decent media device actually, it did some really good things like over the air sync, media sharing and superior sound quality and the on board software wasn't half bad too, i for one will be sorry to hear it's demise, ultimately the iPhone had more to do with it's demise then the iPod
While I can see it happening with MP3 players, consumer cameras disappearing is not realistic. No one wants a bulky phone, and may people want a decent picture and thus need a better lens that what cellphones will have. However, I will agree the market will shrink significantly as more people will settle for typically having a cellphone camera on them when they are doing general activities (no zoom/large prints needed).
I like MS and all but I SWEAR, I never heard of Zune until months after the Zune HD came out. You can get a Zune HD 32 GB for $190 on Newegg which is quite nice!!
i would love to have a well performing 10 megapixel cam on my cell....can't wait for the day when i will not need carry a separate camera to take pics