Microsoft is no longer making any new Zune hardware and its focal mobile music and video entertainment devices will be the Windows Phone 7 smartphones. The Zune software will continue development to serve said mobile OS.
Bloomberg's Dina Bass reports that Microsoft will "cease introducing new versions of the Zune music and video-player amid tepid demand, helping the company shift its focus to mobile phones, according to a person familiar with the decision." Canadians won't really miss the Zune, which saw very limited availabilty in the country. Too bad, since we heard the Zune HD was a killer device and a really excellent music player.