GameStop Axes Zune; Microsoft Shrugs

GameStop, a national chain of video game stores, has announced it will no longer carry Microsoft’s floundering Zune digital media player, TheStreet.com reports. "We have decided to exit the Zune category because it just did not have the appeal we had anticipated," a spokesman said of the iPod competitor, on shelves since late 2006. Microsoft seemed unfazed.

"We have a set of great partnerships that give Zune a strong presence at retail,” a Microsoft marketing man said, “including Best Buy, Target, Wal-Mart, and others.” Nonetheless, the company has sold just about 2 million units since its release; Apple sold more than 10 million iPods last quarter alone. GameStop’s shares were down after the announcement. (More mp3 stories.)