Is the Zune dying a slow death?

It’s not all good news for Redmond today, unfortunately. Tucked away in a SEC quarterly earnings report, Microsoft revealed that the Zune platform is faltering. Sales of Zune devices have dwindled and Zune platform revenue fell by $100 million, a 54%  decrease compared to the same quarter last year. Is this poor performance the death knell for the Zune? Its main competitor, the iPod of course, saw a 3% increase in sales with Apple selling 22.7 million units during its most recent quarter ending earlier this month. With iPods on the upswing, the Zune on the downswing and Microsoft cutting back, will the Zune end up on the chopping block like Microsoft’s Aces Studio or does Microsoft have an ace up its sleeve that will rejuvenate the Zune?

[Via Engadget]

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