It has been reported that the Zune revenues were down considerably by a $100m in the last quarter of the financial end and hence a lot of people are now claiming that the Zune is going to be out of sight in the market. Adding to the Microsoft grudge is that the Apple iPod sales have increased by almost 3 percent in the last quarter of the same financial year.

Zune, as we all know had been launched by Microsoft in order to compete with the much hyped iPod by Apple but hasn’t been able to live up to the expectations of the users. The most recent version of Zune called the Zune 2.0 was initially reported of being launched in UK as well as Europe in the later half of the year 2008, however could never manage to grace the market with its presence.

Microsoft publicly keeps claiming of being deeply attached to the Zune, but privately it has been decided by Microsoft to cut down on the production in order to cut down the costs, keeping the market demands in place. The Silicon Alley Insider has made notes that keeping an eye on the most recent numbers and the self-possessed desire of Microsoft to cut down on the manufacturing costs, simply proves that the Zune comes across as a total failure by Microsoft. Hence the technology giant has made an effort to cut down on the losses and move to the better sides of the market.

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