Microsoft Corporation (NASDAQ:MSFT) has officially announced the end of the Zune. According to a support article on the Microsoft page:

Microsoft Corporation (NASDAQ:MSFT) is going to stop introducing new versions of the Zune according to a source with Bloomberg. Microsoft is focusing on putting Zune software on mobile phones instead. The Zune music player launched in 2006 in an effort to compete with the Apple iPod. “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.” [Bloomberg]

United Airlines (NASDAQ:UAUA) is replacing Sirius XM Radio with Microsoft Zune channels. The contract with Sirius XM ended May 30 and United Airlines decided not to renew. About 21 Zune channels will be available on every in-flight entertainment equipped United aircraft across various genres. [Fool.com]

Microsoft Corporation (NASDAQ:MSFT) has announced that they are releasing a 64GB version of Zune HD on April 12th. Zune fans can buy the device through the Zune online store on the launch date. Retail partners will receive the device later on. The MSRP of the device is $349.99. As a result of the new device’s introduction, the 16GB and 32GB Zune HD will see a $20 price cut on the MSRP to $200 and $270, respectively. The full press release is below [Engadget]:

Microsoft Corporation will be cutting off the original Zune when the Zune HD is released on September 15.  The Zune HD will cost $220 for the 16GB and $290 for the 32GB.  If you want one of the older Zunes, then it is highly recommended that you buy one now.

The advertising war between Microsoft and Apple is back on. Earlier today I wrote about the new Apple advertisement that parodies Microsoft’s Laptop Hunters. Recently Microsoft released an advertisement that focuses on the costs associated with buying music on iTunes versus the Zune Pass.

In the above ad, Microsoft uses famous financial planner Wes Moss to talk about the difference between filling an iPod versus filling the Zune. Interestingly Zune Marketplace is not mentioned in the commercial. The problem with the Zune Pass is that you can only keep 10 songs per month so if you wanted 30,000 songs, you’d have to wait 250 years as pointed out by Ars Technica.

[Ars Technica]

A job posting on the Microsoft website reveals the company’s plans for the Zune music player. The job is based in Redmond and the title is Software Development Engineer.

“The Zune team is looking for a qualified software development engineer to help deliver great digital entertainment features into the living room, including on demand music and video,” states the job posting. “Primary responsibilities include development of innovative user interfaces for delivering a rich, deep interactive media consumption experience in a living room environment. Experience with online services API development is a must, product will provide a rich online media experience delivering music and video from the cloud. A passion for UX and digital media is a must.” The software engineer has to have 3 years of C++ and C#.

I recall earlier that Steve Ballmer specifically mentioned that consumers should not anticipate a “Zune Phone.” Instead Microsoft will be focusing on developing software for a wide range of mobile devices. This job posting implies that Microsoft has more of an interest in designing software built around other consumer devices that complement the Zune. What Microsoft means by media consumption in a living room environment is anybody’s guess.

Microsoft Corporation (NASDAQ:MSFT) has plans to take the Zune media player and online store to television sets.  The Zune online store is called the Zune Marketplace sells millions of songs, podcasts, music videos, and TV shows for downloads.  The Zune market made about $85 million in revenue during the Christmas quarter.

The Zune has a way to go in terms of competing with the iPod.  iTunes pulled in about $3.5 billion during the Christmas quarter and almost 200 million iPods have been sold.  Only about two million Zunes have been sold as of May 2008.

Steve Ballmer stated that Microsoft is “bringing our Zune Service, not the Zune hardware but the Zune entertainment service, to all three screens, PC, phone, and TV.”

[via PCW]