Is Microsoft phasing out “Zune” brand?

[javajolt]

As the dust settled following Microsoft's bombshell announcement that it was joining forces with Nokia on Windows Phone 7, keen-eyed observers noticed a key Microsoft brand that was snubbed during the presentation of the new "third ecosystem": Zune.

Windows Live, Xbox, Bing, MSN, and Office all got a shout-out last Friday as Microsoft and Nokia laid out their grand plans, but Zune—as in the Zune line of music players, the ZunePass music subscription service, and the Zune Marketplace for music, videos and apps—was missing in action.

So noticed SuperSite for Windows blogger Paul Thurrott, who wrote: "It is my opinion and guess that Microsoft is currently phasing out the Zune brand and will simply roll the various Zune services into Windows Live."

ZDNet writer Mary-Jo Foley followed up on Monday, speculating that Microsoft may "opt to rebrand Zune as 'Xbox entertainment'" or something along those lines, especially given that the Zune group now works under the same corporate division in Redmond (the "Interactive Entertainment Business" division, to be exact) as Microsoft's Xbox team.

Microsoft issued a tepid denial to Foley's queries about the Zune brand, telling her that "we're not 'killing' any of the Zune services/features in any way" and that the software giant "remains committed to providing a great music and video experience from Zune" on Xbox Live, Windows Phone 7, and Zune hardware devices (like 2009's impressive Zune HD).

So …. Zune "services/features" are safe, Microsoft says, but what about the Zune brand itself? Indeed, the response provoked another post from Thurrott on Tuesday, who noted that Microsoft's denial "very conspicuously and decidedly ignores" the possibility that the Zune brand "is disappearing."

Zune began life as one of the first Wi-Fi-enabled music players way back in 2006, and while the devices never made a dent in the iPod's massive market share, the Zune's influence can be seen across a variety of Microsoft services—particularly the Xbox Dashboard and Windows Phone 7's "Metro" interface, which take many of their design cues from the Zune.

Yet the Zune brand itself seem to be getting less and less love, with the core Zune services hidden behind the "Music + Video" live tile in Windows Phone 7, while the main menu headings for music and video on Xbox Live are now called simply "Music Marketplace" and "Video Marketplace."

That said, the "Zune" name can still be seen on Xbox Dashboard tiles and once you drill down into the console's music and video menus, while the Zune desktop client (used for syncing Zune players and Windows Phone 7 devices with PCs) is still around.

Of course, the Zune has been declared dead—prematurely, as it turned out—on several occasions in the past. Yet here we are, still talking about it, and there's even been (relatively) recent chatter of a Zune HD2—although ZDNet's Foley wonders if the rumored sequel to the Zune HD might get a name change and be "positioned and marketed as a portable gaming device."

[javajolt]

While most of us are consumed with talk of Windows Phone 7 and Nokia, it’s easy to forget that Microsoft has another platform to look after: Zune. A coupe of years ago, the Zune HD was all we could talk about. However, as of late, all talk of the Zune has fallen by the wayside. This week, the rumor mill turned to the possibility that Microsoft may decide to ditch Zune devices and retain just the brand for media and music on Windows Phone 7.

Late last night, the Zune team took to its Facebook page to debunk any such rumors and assured users that the Zune brand wasn’t going anywhere. Not only that, but the team also said that Microsoft would continue to support the Zune brand whether it was on Windows Phone 7 or Zune devices.

Microsoft watcher Mary Jo Foley got a similar response when she asked about Zune’s fate, but despite this, still believes that Redmond could be preparing to rebrand Zune to something that better communicates Microsoft’s mission to compete in the same market as the iPod touch. Microsoft has said it wants to target the iPod touch with the Zune HD2. Considering Apple’s penchant for praising the iPod touch’s ability as a portable gaming device, Foley believes incorporating the ‘Xbox’ brand could be the answer to positioning the Zune HD2 as a portable gaming device. Cue the rumors of an Xbox Portable?