Microsoft has released an announcement via their Zune support page that says they are giving up the Zune hardware business. They are going to switch the focus from the Zune Music Player to delivering music to their Windows Phone devices.
Microsoft will continue to support existing Zune customers via warranty. Also, current Zune owners will be able to access Zune services for the time being. As far is it looks they are only doing away with the hardware portion of that business. Microsoft also reports that if you’ve recently ordered a Zune it will still arrive. Also store stock will sell through what’s in existing warehouses and not be sent back to Microsoft.
Microsoft’s Zune music service will still support Windows desktops, Windows Phones and Xbox platforms