What will it take for Microsoft to abandon Zune?

If a 54% decline in Q4 year over year sales isn’t enough call for a rebranding, I am not sure what it. Despite introducing new services and big ads, Zune managed to stumble a bit. In contradiction to earlier reports, the Zune division isn’t facing more dramatic cutbacks in staffing than other, perhaps better, performing divisions. What will it take for MS to drop Zune altogether?

Word from MS, in typical fashion, amounts to “we’ve got big plans for Zune.” The company says it plans to release an update to Windows Mobile that will include Zune aspects to help users feel less out of the loop since Apple integrated iPod functionality into its phone.

“We have a broader vision than just selling MP3 players, we are thinking about more connected entertainment experiences driven by the Zune software and services for not only Zune device owners but other ‘tuners’ as well. This vision requires continued investment in the business as we grow the capabilities of what the service needs to do for other screens and devices.” – Zune spokesman Adam Sohn

In the eyes of many consumers, the Zune is a dead brand. While interesting developments in how we get music are interesting (the subscription model is an interesting one for sure), consumers don’t seem to line up in the streets to do so. I’d agree that if MS were to seriously consider dumping it, layoff times would be it. Looks like we’ll get to follow Zune for a bit longer.

Read [HollywoodReporter] and [WashingtonPost]