Microsoft Corp accounted last week that sales on its Zune MP3 player came down by 54 percent during the last quarter. The Zune rival, Apple Inc's iPod, grew more than 3 percent in market share and is seen as the lead music player. While the software giant is cutting dissections that don't have improved sales, some analysts wonder if Zune is on the way out.

Microsoft Zune sales dropped $100 million during the quarter. Last week, Microsoft declared a workforce cutback of 5,000 employees. Most of those employees work for divisions that aren't making sufficient profits in a time when most technology companies are cutting costs. However, it will probably take more for the software giant to remove its Zune multimedia player from its product line.  For example, the Xbox 360 console is still hurting Microsoft with costs. The company is losing money each time the gaming console is sold.

Leave a Reply