Microsoft is close to canning its Zune MP3 player range and focus all of its efforts into its Zune software suite.
This is according to Bloomberg, which has spoken to someone close to the matter who wishes to be unnamed.
Although it was always meant to be a real contender to the Apple iPod, sales of the device haven't made a dent in Steve Jobs' PMP dominance.
Microsoft hasn't revealed whether or not it is stopping production of Zune hardware, but it did say in a statement: "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."
Microsoft also praised its Zune software in the statement, saying: "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."
Via the Telegraph