Microsoft is not doing this......The buying public is doing this.
Go to Dell.com, Walmart.com, Bestbuy.com.........there are almost NO mp3 players available for purchase anymore. Five years ago there were many, many mp3 brands available and all with different options and such.
The buying public has gone the route of the all-in-one phone. I would guess the only reason iPod would show an increase in unit sales is due to really no other mp3 player on the market anymore. But isolate iPod sales and I bet they are down.
MS did the right thing, get out of the player market and concentrate on the Windows phone application.
I have said this before, this is nothing new, MS mentioned this years ago......they saw the market going the way of the mobile phone.
As long as the Zune Marketplace still supports Zune devices, I don't see the problem. Of course unless you break, loose the Zune you have there in lines the problem.
My hope is that Zune becomes syncable with any mp3 player, including iPods.....That to me would be some serious growth for the Zune Pass subscription and the Marketplace.......I thought it might happen by now. Since it has not, I am suspecting that MS might
be looking at releasing another line of players......maybe Christmas 2012.
But who knows.....