Microsoft Axing Zune Player Company has given up on device, will focus on software: source By Rob Quinn, Newser Staff Posted Mar 15, 2011 3:58 AM CDT 7 comments Comments Zune portable media playerson display at Microsoft headquarters in Redmond, Wash. (AP Photo/Ted S. Warren) (Newser) – The music has died for Microsoft's Zune music and video player, a well-placed source tells Bloomberg. The company is going to stop producing new models of the player because of tepid demand and will instead focus on providing Zune software for smartphones, according to the source. When Zune was launched in 2006, Microsoft said it could beat the iPod. But the Zune failed to grab market share from Apple: the iPod took 77% of the digital music player market last year while Zune didn't make it into the top 5. Microsoft hasn't officially confirmed Zune's demise.