"We have decided to exit the Zune category because it just did not have the appeal we had anticipated," a GameStop spokesperson told TheStreet.com. "It [also] did not fit with our product mix."
The company will keep Zunes in stock until its inventory is gone. But it’s left Microsoft very defensive.
"We have a set of great retail partnerships that give Zune a strong presence at retail including Best Buy, Target, Wal-Mart, and others," Adam Sohn, director of marketing for the Zune, noted in a statement. "We will continue to invest in deep retail partnerships, and have seen good momentum online and at retail over the last few months including a great response to our recent spring update."
However, it’s a simple fact that the Zune, which Microsoft introduced two years ago, has really failed to make a dent in the market with just 4% of the market, as opposed to the 71% claimed by the iPod.
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