Bloomberg ran a report suggesting Microsoft will discontinue producing Zune hardware, as the hardware platform has failed to compete with Apple's iPod range.
However, Microsoft may be keeping the Zune brand, which is prominently promoted via its other hardware devices, including the Xbox 360, Windows Phones and on the PC.
But it is expected that Zune music players will no longer produced, as Microsoft will focus on producing Windows Phones that can also dub as music players.
In an email to RelaxNews, Microsoft stated that "We're absolutely committed to providing the best movies, music, and TV show experiences through Zune on Xbox, the PC, Windows Phone 7 and Zune devices."
"We'll share more information about the evolution of the Zune entertainment service and Zune hardware as future plans develop," Microsoft added.
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