Reports are that Microsoft will stop making new versions of the Zune music and video player. The Zune has failed to crack the top five most popular most popular music players in its five years since its introduction; Zune features and software will instead be funneled into Windows Phone 7.

We have nothing to announce about another Zune device — but most recently have introduced Zune HD to Canada via the Zune Originals store and remain committed to supporting our devices in North America, said Microsoft in a statement. We are thrilled by the consumer excitement for Zune across many new platforms, including Windows Phone 7 and Xbox 360. Our long-term strategy focuses on the strength of the entire Zune ecosystem across Microsoft platforms.

Source: Bloomberg