No More Zune Hardware

Bloomberg:

Microsoft Corp. (MSFT) will cease introducing new versions of the Zune music and video player because of tepid demand, letting the company shift its focus to other devices, according to a person familiar with the decision.

Because of tepid demand? Microsoft should have killed the Zune a long time ago if that’s really the reason. Zune software will continue, in Xbox and Windows Phone 7 though. I think it’s a mistake for Microsoft to kill the Zune hardware; the industrial design is top notch as well as the user interface. Instead of killing it, Microsoft should continue developing Zune with a twist: make WP7 apps work on it. Copy Apple: the iPod touch is kind of like an iPhone without the phone sharing a bunch of iOS apps. The Zune could be the WP7 without the phone. Microsoft should stick to what has worked brilliantly in the past: copying Apple.