GameStop pulls Microsoft’s Zune MP3 player from shelves

Video game hub GameSpot has finally decided to get out of the Zune-selling business, because of Microsoft’s portable media player’s poor performance in terms of sales.

GameStop, a videogame retail chain with 5,400 locations worldwide, said that it will discontinue selling the Microsoft Zune, a portable music player that is Microsoft's answer to Apple's iPod, citing lack of demands.

The videogame retailer already has pulled its stock of Zunes from its stores. "We have decided to exit the Zune category because it just did not have the appeal we had anticipated," a GameStop spokesperson said. "It [also] did not fit with our product mix."

Microsoft launched its portable media player Zune on November 14, 2006 as potential iPod killer, but the device failed to challenge the Apple iPod's monopoly on the portable music player market.

Last year in May, Microsoft Entertainment head Robbie Bach had announced that the company has sold a little over a million of the portable media player Zune in just six months after the launch, surpassing its target to sell 1 million Zune digital media players by the middle of 2007. But, since then the sales had started slowing down considerably. It took another year for Microsoft to reach 2 million units sold for its Zune line.

Microsoft has made several attempts to grab the monster share of the digital music business pioneered by its chief rival, Apple Inc. Last year it revamped its Zune lineup by introducing new models and introduced its own online video store, The Zune Marketplace to lure the consumers. But, it seemingly failed to impress the consumers.

iPod was launched in the year 2001, since then, there has not been a looking back for Apple Inc., and has continued to introduce ten different iPod models to date. This includes five series of iPod, two series of iPod nano, two series of iPod mini and two generations of iPod shuffle.

Since Zune's release, Microsoft has sold 2 million units, while Apple sold 10.6 million iPods in the first quarter of 2008.

The latest move by GameStop represents yet another strike against the Microsoft Zune. But, Microsoft still believes its revamped Zune lineup would turn around the failing business.

Responding quickly to GameSpot’s decision, Adam Sohn, director of marketing for the Zune, said: "We have a set of great retail partnerships that give Zune a strong presence at retail including Best Buy, Target, Wal-Mart, and others."

"We will continue to invest in deep retail partnerships, and have seen good momentum online and at retail over the last few months including a great response to our recent spring update."

http://www.themoneytimes.com/articles/20080526/gamestop