Microsoft has reportedly decided not to produce new versions of its Zune media player owing to its rapidly declining demand.
Citing people familiar with the matter, Bloomberg reported the company won't continue to make new Zune video and music players, but will instead focus on other devices.
The company has decided to make the Zune player and music purchasing software for smartphones running on its Windows Phone mobile operating system platform.
Microsoft can really spin-off Zune into a popular place to purchase and listen to music by integrating it not only with Windows Phone, but into the Windows 8 platform. The platform allows users to listen to music, purchase, rent movies and even get unlimited streaming by paying a monthly subscription.
"We have nothing to announce about another Zune device -- but most recently have introduced Zune HD to Canada via the Zune Originals store and remain committed to supporting our devices in North America," the company said in a statement to Bloomberg.
"We are thrilled by the consumer excitement for Zune across many new platforms, including Windows Phone 7 and Xbox 360. Our long-term strategy focuses on the strength of the entire Zune ecosystem across Microsoft platforms," Microsoft added.