Is Microsoft phasing out “Zune” brand? (Ben Patterson)

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 Wednesday, 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."

What do you think: would you like the Zune brand to stick around, or would you rather that Microsoft finally put it to bed?

Related:
Is Microsoft Zune about to be Kinned? [ZDNet]
About Zune. Yes, Microsoft is killing it [Windows Phone Secrets]

— Ben Patterson is a technology blogger for Yahoo! News.

Follow me on Twitter!

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Nokia and Microsoft form alliance

11 February 2011 Last updated at 09:41 GMT Stephen Elop was at Microsoft before taking over Nokia in September 2010 Nokia has announced plans to form a "broad strategic partnership" with Microsoft.

The deal would see Nokia use the Windows phone operating system for its smartphones, the company said.

Microsoft's Bing will power Nokia's search services, while Nokia Maps would be a core part of Microsoft's mapping services.

Earlier this week Nokia chief executive Stephen Elop sent a memo to staff warning that the company was in crisis.

The memo, published first by technology website Engadget, warned that the company was standing on a "burning platform".

The new strategy means Nokia's existing smartphone operating systems will be gradually sidelined.

Continue reading the main story Rory Cellan-Jones Technology correspondent, BBC News

"So Stephen Elop has pushed Nokia off that now infamous burning platform he described to staff some days ago and into the unknown.

His chosen lifebelt is Windows Phone 7, a new smartphone operating system that has won critical praise but, so far at least, only a tiny share of the market.

So Nokia is moving from an ailing system Symbian - which still has a large chunk of the market - to a fledgeling which has yet to prove itself, made by a firm with a poor track record in mobile.

Why then, did Mr Elop not opt to go with Google's Android, the operating system with momentum behind it? Perhaps he feels more comfortable with the culture of Microsoft, where he worked until joining Nokia.

The cruel verdict from some is that two turkeys don't make an eagle - but you can't fault Mr Elop for his audacity. This is a huge moment which could shape the future of an industry."

Symbian, which runs on most of the company's current devices will become a "franchise platform", although the company expects to sell approximately 150 million more Symbian devices in future.

The announcement is widely seen as a response to the growing pressure from other smartphone platforms, including Google's Android and Apple's iPhone.

"This is a clear admission that Nokia's own-platform strategy has faltered," said Ben Wood, an analyst with research firm CCS: Insight.

"Microsoft is the big winner in this deal, but there are no silver bullets for either company given the strength of iPhone and Android," he added.

Nokia's share of the smartphone market fell from 38% to 28% in 2010, according to monitoring firm IDC.

Nokia's upcoming Meego operating system also appears to have been sidelined, to some extent.

According to the company statement: "MeeGo will place increased emphasis on longer-term market exploration of next-generation devices."

The new platform was expected to form the core of Nokia's future smartphone and tablet strategy.

The company says it still plans to ship one Meego device by the end of 2011.

For Magnus Rehle, the Nordic managing director of research firm Greenwich Consulting, Nokia may have difficulty juggling its three operating systems: Windows, Symbian and MeeGo.

"Three platforms is a lot to work with. I'm not sure there is room for so many platforms," he said.

And, as with any tie-up, there could be clashes between the two firms.

"Elop has to convince the best people to stay and some people will inevitably be jumping off the burning platform," he said.

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