Microsoft finally killing the Zune device?

On the podcast we have been talking about whether Microsoft would kill the Zune brand since the complete lack of Zune presence by Microsoft at CES. Well according to Bloomberg Microsoft have killed the dedicated Zune device and will just continue with the  Zune service on devices like Windows Phone and Xbox. To be honest I didn’t expect Microsoft to make any more Zune devices but it does seem a shame considering how good the Zune HD actually is, I still think a new Zune HD device that is basically a Windows Phone 7 without the phone part (like the iPod Touch) would make a good device but it looks like even if Microsoft did develop such a device it will not be called a Zune.

Microsoft Corp. (MSFT) will cease introducing new versions of the Zune music and video player because of tepid demand, letting the company shift its focus to other devices, according to a person familiar with the decision.

Microsoft will concentrate on putting Zune software onto mobile phones, such as those running its Windows operating system, said the person, who declined to be identified because the decision hasn’t been announced. Zune software lets customers buy songs and movies, as well as pay a monthly fee to stream unlimited music.