GameStop Axes Zune; Microsoft Shrugs

Video game retailer will no longer sell Microsoft's feeble mp3 player
By Harry Kimball,  Newser Staff
Posted May 23, 2008 7:22 PM CDT
The Zune in all its glory.    (AP Photo/Microsoft Corp.)
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(Newser) – GameStop, a national chain of video game stores, has announced it will no longer carry Microsoft’s floundering Zune digital media player, reports. "We have decided to exit the Zune category because it just did not have the appeal we had anticipated," a spokesman said of the iPod competitor, on shelves since late 2006. Microsoft seemed unfazed.

"We have a set of great partnerships that give Zune a strong presence at retail,” a Microsoft marketing man said, “including Best Buy, Target, Wal-Mart, and others.” Nonetheless, the company has sold just about 2 million units since its release; Apple sold more than 10 million iPods last quarter alone. GameStop’s shares were down after the announcement. (Read more mp3 stories.)