Microsoft appears to be winding down the Windows Live and Zune brands as Windows 8 is being introduced. Windows Live applications are being rolled into preinstalled apps that work as the core of “Windows Communications” applications for Windows 8. Windows Live ID will be replaced by Microsoft Account. And the Zune will be replaced with Store, Music, and Video applications. But Zune Pass functionality will still exist.
The Microsoft Xbox team is handing the management of the Metro style Video and Music apps within Windows 8. The full transition away from Zune will happen over the summer when more of the company brands will be consolidated. According to The Verge, this is what the branding will be in Windows 8:
Microsoft Account (Windows Live ID)
Mail (Windows Live Mail)
Calendar (Windows Live Calendar)
People (Windows Live Contacts)
Photos (Windows Live Photo Gallery)
Music (Zune Music Player)
Video (Zune Video Player)
It is also rumored that Microsoft will be replacing Zune with a service that is similar to Spotify later this year.