Music video by Adele performing Rolling In The Deep

We hear that Microsoft will cease development of its family of Zune-branded music players due to weak demand and a desire to focus on its smartphone platform.

Zune will live on as a software-and-services platform, according to Bloomberg’s source. Windows Phone 7 embeds the Zune player for media playback on the phone, uses the Zune Marketplace for online music sales, and the Zune PC software for media syncing and firmware updates.

Since their introduction in 2006, the Zune players always played second to Apple’s iPod line. The 2009 Zune HD model was a well-received, well-designed, and supremely elegant device, although it was a case of too little, too late. It was competing against Apple’s iPod touch, with its enormous App Store advantage.

Microsoft also did little to promote the Zune brand beyond US borders. Until recently, the Zune HD was U.S.-only and as a result, Microsoft failed to threaten Apple’s dominance (77 percent of the digital music player market) last year.

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